Instructor: Basil Al Hashimi

Please be sure to visit each of the following links:

syllabus

module 1

module 2

module 3

module 4

module 5

Instructions for Module # 5

1. Required Reading as follows: Chapters 21 and 22 in Microeconomics.
2. Written Report Assignment:
   Written Report: Prepare a 2-3 page report addressing all of the topics below. The paper should be based upon reading, research, or experience, such as a personal job experience or case study. Concepts from the text should be integrated when applicable. (50 Points).

3. Article analysis: Choose an article related to the subject and write one page paper pointing out the main points in the article related to the module subject. (10 points).

Explain the impact of international trade on the economy of the U.S.A. and American companies in terms of promoting their businesses and involvement in world trade. 

and

The importance of the concept of comparative advantage on international trade. Also, the relationship between opportunity cost and comparative advantage.

Important Points of Chapters 21 and 22 (handout for these chapters):

Written by: Basil Al-Hashimi Course: Microeconomics 212

The following notes have been created in order to assist you in your understanding of the text as well as to help you prepare for your examination.

1. International trade occurs because of specialization in production.

2. Comparative advantage is based on relative opportunity costs of producing goods in different countries.

3. With international trade and specialization in production, each nation can consume outside its PPF.

4. International trade between countries A and B can be mutually profitable even though A can produce every commodity more cheaply than B.

5. The terms of trade are the amount of an export good that must be given up to obtain one unit of an imported good.

6. International equilibrium trade occurs at the point where the quantity of imports demanded by one country is equal to the quantity of exports supplied by the other country.

7. The "infant industry" argument justifies tariff protection for a new industry with large potential economies of scale.

8. Quota is a form of import protectionism in which the total quantity of imports of a particular commodity during a given period is limited.

9. Protectionist tariffs and quotas often reduce the real incomes of the protected workers and consumers.

Basil Al Hashimi

Please be sure to visit each of the following links:

syllabus

module 1

module 2

module 3

module 4

module 5

Please contact Basil al Hashimi for comments or corrections   email  Red Mountain Campus   phone: 480-654-7715   see a map

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