Choices You have 1000 to spend and your alternatives are Purchase 1 USmade television and 1 USmade bicycle or Purchase 1 Chinesemade television 1 Koreanmade bicycle and ID: 434339
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Slide1Slide2
Trade
Choices
You have $1,000 to spend and your alternatives are:Purchase 1 U.S.-made television and 1 U.S.-made bicycle.orPurchase 1 Chinese-made television, 1 Korean-made bicycle and 2 cases of French wine.orPurchase $1,000 of stock in a Canadian company.
Which do you choose?Slide3
Voluntary Trade
Creates WealthSlide4
Example 1Slide5
Example 1Slide6Slide7Slide8Slide9Slide10
Win - WinSlide11
Win – Win ?Slide12
Win – Win ??Slide13
Win – Win ???Slide14
Apples and Oranges
Apple price $.70/
lbOrange Price $.70/lbWashington Grower20 acres yields
Apples 50 bu/acre
Oranges 1bu/acre
Florida
Grower
20 acres yields
Apples 2bu/acre
Oranges 40
bu
/acre
Trade & Comparative Advantage – Example Slide15
Rank
Country
Exports
Imports
Total Trade
%
of Total Trade
---
Total, All Countries
665.2
948.2
1,613.4
100.0%
1
Canada
127.0
141.0
268.0
16.6%
2
China
49.3
174.5
223.8
13.9%
3
Mexico
98.3
119.0
217.2
13.5%
4
Japan
27.7
55.3
82.9
5.1%
5
Germany
21.1
50.271.34.4%6Korea, South18.827.946.72.9%7United Kingdom21.322.443.72.7%8France13.119.732.82.0%9Saudi Arabia7.224.431.62.0%10Brazil17.711.229.01.8%
Top 10 U.S. Trade Partners, Total Trade, Year to Date (May, 2014)
US$, bn, unrevised
http://www.census.gov/foreign-trade/statistics/highlights/top/top1405yr.htmlSlide16
Rank
Country
Imports
% of Total Imports
---
Total, Top 15 Countries
726.5
76.6%
1
China
174.5
18.4%
2
Canada
141.0
14.9%
3
Mexico
119.0
12.5%
4
Japan
55.3
5.8%
5
Germany
50.2
5.3%
6
Korea,
South
27.9
2.9%
7
Saudi
Arabia
24.4
2.6%
8
U.K
22.42.4%9France19.72.1%10India19.22.0%CountryExports% of Total ExportsTotal, Top 15 Countries477.571.8%Canada127.019.1%Mexico98.314.8%China49.37.4%Japan27.74.2%U.K.21.33.2%Germany21.1
3.2%Korea, South
18.8
2.8%
Netherlands
17.92.7%Brazil17.72.7%Hong Kong16.82.5%
U.S. Trade, Imports & Exports, Year to Date (May, 2014)
US$, bn, unrevised
http://www.census.gov/foreign-trade/statistics/highlights/top/top1405yr.htmlSlide17
Rank
Country
Surplus
1
Hong
Kong
14.5
2
Netherlands
8.8
3
United Arab
Emirates
7.6
4
Australia
6.7
5
Brazil
6.5
6
Singapore
6.1
7
Belgium
5.3
8
Panama
4.2
9
Argentina
2.7
10
Egypt
2.6
Rank
Country
Deficit
1
China
-28.82Germany-6.63Japan-5.14Mexico-4.35Canada-2.86Korea, South-2.77Saudi Arabia-2.78India-2.49Ireland-2.110Italy-2.1U.S. Trade Surplus & Deficit, Year to Date (May, 2014)US$, bn, unrevisedhttp://www.census.gov/foreign-trade/statistics/highlights/top/top1405yr.htmlSlide18
http://www.census.gov/foreign-trade/data/index.htmlSlide19
Balance of PaymentsSlide20
ExampleSlide21Slide22
The DataSlide23
The DataSlide24
The BalancesSlide25
Trade DeficitSlide26
International Comparisons of Hourly Compensation Costs in Manufacturing