Explore BrainMass
Share

If our country can make everything better and cheaper than f

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

If our country can make everything better and cheaper than foreigners, why would we have any reason to be involved in international trade?

© BrainMass Inc. brainmass.com October 25, 2018, 5:14 am ad1c9bdddf
https://brainmass.com/economics/international-trade/if-our-country-can-make-everything-better-and-cheaper-than-f-411736

Solution Preview

If our country can make everything better and cheaper than foreigners, why would we have any reason to be involved in international trade?

Solution:

First of all, our country can't make everything better and cheaper than every other country in the world. One of the main reasons that we ...

Solution Summary

If our country can make everything better and cheaper than foreigners, why would we have any reason to be involved in international trade?

$2.19
See Also This Related BrainMass Solution

Assess questions and explain briefly for each if they are true or false and why?

1.An increase in Canada's exports will always lead to an improvement in our current account. (true/false) 2.If a Canadian purchases shares in Microsoft, this shows up in the Balance of Payments Financial Account as a debit item only. (true/false)
3.Purchasing power parity cannot hold if the law of one price does not hold. (true/false)
4.A real depreciation of the canadian dollar increases aggregate demand for canadian output.(true/false)
5.The difference between the short run and the long run is the prices are less flexible in the long run. (true/false)
6.There is little empirical support for the Purchasing power parity theory because the assumptions behind PPP do not usually hold.(true/false)
7..If a tourist from New York buys a meal in Toronto, paying with a travelers check, this shows up in the balance of payments as a debit item in the current account.(true/false)
8.Under the monetary approach to exchange rates, an increase in either country's national income has no effect on equilibrium exchange rates. (true/false) 9.An increase in world relative demand for Canadian output causes a long -run real depreciation of the canadian dollar against the euro.(true/false)
10.A change in the money supply has no effect on the long run values of the interest rate or real output.(true/false)

View Full Posting Details