Microeconomics

Unit 2 Assignment: Comparative and Absolute Advantage in International Trade Including an Understanding in Multiculturalism

 

In this Assignment, you will be assessed based on the following outcomes:

GEL-1.02: Demonstrate college-level communication through the composition of original materials in Standard English.

PC-4.1: Assess the value of multiculturalism and diversity in a global environment.

 

 

In this Assignment, you will conduct the appropriate research to answer the assigned questions and create a 3-4 page expository research paper.

 

Assignment

An effective understanding of economics forms the foundation of every manager’s, entrepreneur’s, bureaucrats, and leader’s ability to analyze business situations and to develop an appropriate response. The globalization of business is a fact of life for all business professionals. One of the most contentious issues in today’s global business world is the issue of closing local manufacturing facilities, laying off those American workers, and re-opening the same manufacturing facility in an Asian, or other third world country.

Look in your own closet at the clothes you have purchased. Pick any 10 items of clothing and look at the labels in those clothes. Where were they manufactured? How many of the 10 items were manufactured here in America? If that same exercise had been done 50 years ago, (approximately the 1970s), all the clothes you owned would have been manufactured in textile mills in the Southeastern United States (Georgia, Alabama, Mississippi, North Carolina, South Carolina, etc.). All those Southeastern textile mills are now closed, and people buy foreign made clothes. If you were able to go further back in time to 150 years ago (1870s), the clothes you owned would have been manufactured in textile mills in the Northeast United States (Maine, New Hampshire, Vermont, Massachusetts, etc.). Yet, by the early to mid-1950s, those Northeastern textile mills were closed and their workers were out of a job. The mills had all relocated to the Southeast during the years following the Civil War.

Many people say that we should ban the import of these foreign made clothes, so that more workers in American clothing textile mills could have jobs. Others say that we should continue to import clothing because imported clothing is relatively less expensive and more people can afford to buy more clothes at these low prices. Still others say that we should put an import tariff (an extra tax that would be paid when we buy these imported clothes), making the price of imported clothing comparable to the price of clothing made in the U.S., and, therefore, encouraging American consumers to buy American-made clothing.

Questions

Before answering the following questions, review the Assignment Checklist. Then, in a separate Word document, answer the following questions in a 3–4 page expository research paper:

  1. How much does international trade affect you personally? Look at any 10 items around your home that you have purchased in the last year. Where were they made? How many were made in America, compared to how many were foreign made?  What things does America export to other countries? What things does America import from other countries? How does what you have learned about Comparative Advantage affect this trade?

 

  1. Currently there is a lot of talk among politicians about imposing tariffs on foreign made products imported into the U.S. and retaliatory tariffs imposed by foreign countries on U.S. made goods. What is a tariff? Who ultimately pays the tariff? Who gets the proceeds from the tariffs? What is the money used for? Discuss the advantages and disadvantages to all involved parties (American workers, American consumers, foreign workers, and foreign consumers) of tariffs on imports to the U.S. and retaliatory tariffs imposed by foreign countries on U.S. made goods.

 

  1. In considering the foreign trade issue, discuss how the background, education and cultures of the people in the U.S. and the cultures in each trading country affects their understanding of the importance of foreign trade. Discuss the importance of your ability to understand and accept multiple cultural differences in a global context. What recommendations would you suggest to increase American understanding and acceptance of foreign cultures?

 

Assignment Checklist:

 

  • Write your paper in a separate Word document.
  • Unless specified differently by your course instructor, save your Assignment to your computer with the following file naming format: Course number_section number_last name_first name_unit number
  • Your title page should, at a minimum, contain the following information: Your name, course number, section number, date, and the title of your paper
  • Write a 3–4 page paper (in addition to the title and reference pages) following APA 6th edition format with citations to any quoted, or paraphrased sources. Your written research should also be in Standard English with correct spelling, punctuation, grammar, and style (double-spaced, in Times New Roman, 12–point, and in black font).
  • Your paper should provide a clearly established and sustained viewpoint and purpose.
  • Your writing should be well ordered, logical and unified, as well as original and insightful.
  • A separate page at the end of your research paper should contain a list of a minimum of one cited and referenced academically credible reference, in proper APA 6th edition
  • Cite and reference your academically credible sources from the Library and any other academically oriented online sources. Review the APA formats found in Writing Resources accessed through the Academic Success Center within the Academic Tools area of the course.
  • Review the Rubric below to ensure all points have been captured in the paper.

 

Directions for Submitting your Assignment

Be sure to respond to all the questions using the critical elements listed in the Assignment Checklist and submit your paper to the Unit 2 Assignment Dropbox by Tuesday, midnight ET of this unit.

 

Unit 2 Assignment: Comparative and Absolute Advantage in International Trade including an Understanding of Multiculturalism Possible Points Points Earned
Overall Writing: 10  
Used correct file name in uploading assignment document. 2  
Demonstrated concerted effort to utilize material from the textbook and/or seminars to answer questions. 3  
Correctly formatted paper in APA 6th edition. Includes a minimum of one cited and referenced academically credible source. 3  
Used standard English with few or no grammatical errors. 2  
Individual Questions: 30  
1. Thoroughly researched and analyzed international trade in light of Comparative Advantage theory. 10  
2. Thoroughly researched and analyzed the impact of U.S. Trade tariffs on products imported into the U.S. and retaliatory foreign trade tariffs on U.S. exports. 10  
3. Thoroughly developed and discussed recommendations for how to encourage Americans to have a more accepting attitude toward other cultures and how that acceptance will further economic conditions world-wide. 10  
Less points deducted for late submission    
Total Points 40