Learning Goal: I’m working on a macro economics discussion question and need an

Learning Goal: I’m working on a macro economics discussion question and need an explanation and answer to help me learn.U.S. and China Free TradeEach week, you will be asked to respond to the prompt or prompts in the discussion forum. Your initial post should be 75-150 words in length, and is due on Sunday. By Tuesday, you should respond to two additional posts from your peers. Imports increase the domestic supply and lead to lower prices for consumers. Exports reduce the domestic supply and push price upward. The net effect of international trade is an expansion in total output and higher income levels for both trading partners (law of comparative advantages).”The United States is suffering from an excess of imports. Cheap foreign products are driving American firms out of business and leaving the U.S. economy in shambles.” Evaluate this view.Review absolute and comparative advantages. Personal private property protection allows for greater entrepreneurial ventures, and thus an expanding economy and job growth; can import tariffs and quotas reduce the benefits of trade? Review the mechanics of import tariffs and quotas and world price.View your discussion rubric. Nathaniel Yoap W8 DiscussionCOLLAPSEHey class, Imports are healthy to any economy, but an excess of imports can crumble it. We are seeing something like this in the United States as imports from countries like Mexico and China are the highest that they have ever been. Production overseas is often cheaper and this allows those countries to sell their products at the cheapest available price. This causes many US based companies to import products and outsource jobs to other countries and the American worker will become jobless. This impacts the economy because full employment falls and the natural rate of unemployment rises. This leads to less commerce because citizens have less money to purchase goods and services. Comparative advantage is a country’s ability to produce a good or service at lower cost than competing countries due to the factors of a region. An absolute advantage is a country’s ability to produce a good or service the most efficiently from competitors due to the factors of a region. Import tariffs and quotas can mitigate the benefits of trade. It punishes the act of importing goods, thus rewarding production to stay in its home country. An import quota is a tool that is used to limit the amount of a good that can be imported over a specific period. An import tariff is a tax on imports. World price is the price that is set on a good or service for every country except for the country that produces the good or service. Reference Sobel, R. S., Stroup, R., Gwartney, J. D., & Macpherson, D. A. (2021). Gaining from International Trade. In Macroeconomics: Private and public choice (pp. 362–382). essay, South-Western.Margarita Douglas Week 8 DiscussionCOLLAPSEAbsolute advantage refers to the uncontested superiority of a country or business to produce a particular good, better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production diversification. An import quota is a constraint placed on the amount of a particular good that can be imported. Because a tariff is a tax, the government will see increased revenue as imports enter the domestic market. Tariffs increase the prices of improved goods. Because of this, domestic produces are not forced to lower their prices of improved competition and domestic consumers are left paying higher prices as a result.Tariffs also reduce efficiencies by allowing companies that would not exist in a more competitive market to remain open. The role tariffs play in international trade has dropped in modern times. One of the main reasons for the decline is the introduction of international organizations designed to improve free trade such as the (WTO).
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