Mankiw 6e. Experience it.
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Chapter 9: Application: International Trade

Recent Posts
(Note: Page numbers referenced in posts prior to June 1, 2011 refer to 5th edition)

 

March 30

Should the United States depend on foreign suppliers for vital resources?

Allen Sanderson provides a humorous view of protectionists.

Textbook References:

Pages 58-59 “Should the United States Trade with Other Countries?”
Pages 188-194 “The Arguments for Restricting Trade”

February 18

Reinhardt on Trade

Uwe Reinhardt discusses the value of free trade, and presents a concern about it from Alan Blinder.

Textbook References:

Chapter 3 “Interdependence and the Gains from Trad ”
Pages 180-188 “The Winners and Losers from Trade”

December 26

Smoot-Hawley Revisited

Scott Sumner argues that the Smoot-Hawley tariffs of 1930 crushed an incipient recovery and may have been a main reason for the Great Depression's severity.

Textbook References:

Page 183-185 “The Effects of a Tariff”
Pages 765-766 “Two Big Shifts in Aggregate Demand: The Great Depression and World War II”


November 8

Take Out Your Pencils

Mankiw presents an exam question wherein a monopolist in a closed economy reacts to the opening of its market.

Textbook References:

Page 179 “The World Price and Comparative Advantage”
Pages 186-188 “Other Benefits of International Trade”
Pages 315-322 “How Monopolies Make Production and Pricing Decisions”
Pages 322-326 “The Welfare Cost of Monopolies”


October 20

More Shots in the Trade War

China imposes a new tariff on nylon in a tit for tat trade war with the U.S.

Textbook References:

Page 8 “Principal 5: Trade Can Make Everyone Better Off”
Chapter 3 “Interdependence and the Gains from Trade”
Pages 183-185 “The Effects of a Tariff”
Pages 728-730 “Trade Policy”


Mar. 11

Turning Away the Best and the Brightest

The stimulus bill contains a clause making it harder for U.S. firms to hire skilled immigrants.

Textbook References:

Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”


Mar. 4

Another Loss for Economic Freedom

The economic stimulus bill restricts the hiring of foreign workers.

Text References:

Page 8 “Principle 5: Trade Can Make Everyone Better Off”
Pages 8-10 “Principle 6: Markets Are Usually a Good Way to Organize Economic Activity”
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”

Chapter 9: Application: International Trade
Archived Posts

 

Feb. 16

China Favors Free Trade, Even if U.S. Doesn’t

China promises to avoid protectionism, even though the U.S. stimulus bill includes protectionist policies.

Textbook References:

Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”


Feb. 10

Tit for Tat

Canadian unions join the chorus for economic nationalism.

Textbook References:

Page 8 “Principle 5: Trade Can Make Everyone Better Off”
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”


Feb. 5

Malkiel on “Buy American”

Burton Malkiel argues that the stimulus package should not include protectionist provisions.

Textbook References:

Page 8 “Principle 5: Trade Can Make Everyone Better Off”
Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”


Feb. 2

Irwin on “Buy American”

Douglas Irwin advises against requiring infrastructure projects to use domestic steel and other inputs.

Textbook References:

Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”


Jan. 31

Smoot, Hawley and Pelosi

The proposed stimulus package contains a provision that would prevent infrastructure projects from using foreign steel.

Textbook References:

Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”


Jan. 4

The Protectionist Threat

Mankiw warns against the possibility of protectionism in the stimulus package.

Textbook References:

Chapter 3 “Interdependence and the Gains from Trade”
Chapter 9 “Application: International Trade”
Pages 728-730 “Trade Policy”