ers / Awil daortry Downloads / midterm % 20 Fall%202%2020 1 8%20 (1 ).pdf 4. Sup
ID: 331026 • Letter: E
Question
ers / Awil daortry Downloads / midterm % 20 Fall%202%2020 1 8%20 (1 ).pdf 4. Suppose that when trade with the rest of the world begins, country A begins to import textiles- a low-skill, labor-intensive good. a) What is likely to be the effect of trade on wages of different types of workers in country A? Explain why in detail? (2 points) b) Which group of citizens in country A would you expect to support free trade and why? Why would oppose free trade and why? (2 points) All else being equal, if a nation decided to intervene in free trade anyways, which of the following policy options would be most beneficial to the country and which would be the least beneficial? Please explain your answer clearly for full credit: Tariffs, Quotas and Voluntary Export Restraints (3 points) 5. 6. Intellectual property (IP) is one of the most important areas of study in international business. Your textbook discusses TRIPS and attempts to harmonize IP laws across countries Nevertheless IP laws continue to be less than harmonized across countries. Please answer the following questions analytically. Why do we have IP laws in the first place, especially separate from property laws that already exist? Given the existence of these laws, what explains why for instance in the US we have a 17 year time period for patents, or 70 years after life for copyright, etc? In other words, where do these numbers come from? Finally, why do different countries differ in their IP laws? For example, most countries have different time periods for patents and copyrights, as well as different systems (first-to-file versus first-to-invent) for determining iP ownership. While answering the last part of this question, please consider cultural, economic, social, political, religious and other factors that might explain IP differences. (4 points)Explanation / Answer
Answer 4. A. There is a considerable effect of overseas trade agreements between countries on all the demographic within the working class. Taking the specific example of textile, which is a low-skilled, labor intensive good, this has both negative and positive impact on labor depending upon the class we talk about. Now for the manufacturing workers, the wages go significantly down because of the diminished demand for their work. On the other hand, workers in the managerial positions would see a bump in the wages because of the increased volumes and quality of goods to sell.
B. The workers involved in actual trading and selling and of goods on a high level would support the free trade because as the tariffs and other trade barriers are diminished, their capacity of running business with more profit increases.
Answer 5. Quotas and voluntary export restraints are supposed to be good considerations while forming a free trade policy. Talking about tariffs, it is actually only a way to improve business profits on both sides of the trade. If we talk about the manufacturing working class people, it has not much of a positive effect on wages, etc. Other two policy consideration might be helpful in minimizing the wage loss to workers while implementing free trade.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.