Free Trade Protection Homework Help

Get customized homework help now!

Free Trade Policies:

Most famous theory of comparative advantage arose with the hypothesis by Heckscher-Ohlin (HO), based on resource abundance. Labor-abundant countries would have comparative advantage in, and would export, labor intensive goods. From the above widely accepted theorem there emerged three important corollaries. As a country shifts from protection to free trade, prices of factors (land, labor, and capital) adjust without the factors having to migrate to other countries, so that trade is a substitute for migration.

  • Trading will move factor prices towards international convergence, on equalization
  • Free trade will increase the relative price (and income) of a country's abundant factor. (increased trade normally raises product and factor prices in industries which enjoy comparative advantage and which are intensive in that abundant factors.

While tariffs and quotas diminish production without any benefit to the American workers, the principle of free trade does not in any way prohibit the restriction of imported products that are harmful to consumers, the environment or the workers who produced them. A tariff is a tax on imported products, and a quota is a limit on the number of a specific product that comes from another country. People who advocate tariffs and quotas contend that these restrictions on foreign trade will insure a larger number of jobs at higher wages than would result if international trade were unrestricted. While trade agreements like NAFTA (North American Free Trade Agreement) include hundreds of pages of provisions that are not free trade, the tendency continues in the spirit of freer trade. Today, many of the corporations that were in the past advocates of protection, have established facilities in other countries and are now sending goods to the United States. Others are importing component parts which are incorporated into American products. In both cases, tariffs diminish their profits, so, many of them have reversed their positions, and now favor free trade.




Classof1.com is a pioneer in online tutoring and homework help. Our tutors are highly qualified in their subject areas and have been helping students since 2003. For immediate Free Trade Protection homework help, use the homework-help form present on this page. You can also get help with your Free Trade Protection homework by writing to learning@classof1.com.

For instant assistance, click here to start a live-chat with us.



Economics Homework Help
Name* :
Email* :
Country* :
Phone* :
Subject* :
Attachment* :
Upload another homework (upto 5 uploads max.)
Deadline*

Type Your Questions OR Instructions Below
Type this code and send us your free trade protection homework questions to get written lessons from expert free trade protection tutors.
(Type Security Code - case sensitive)
By clicking on the "Get Homework Help" button, you agree to the Terms and Conditions of Classof1.
Courses/Topics we help on
Economics Microeconomics
Opportunity Cost Monopoly and Price Discrimination
Production Possibility Frontier Monopolistic Competition
  Show all >>
Books in use
Macroeconomics, Rudiger Managerial Economics, D.N.Dwivedi
Statistical Methods, Gupta S.P International Economics, Jhingan
Govt By The People, MAG Microeconomics, Robert
Show all >>

Classof1.com is a safe, secure and trusted website as certified by Norton Secure (powered by VeriSign)
About Us | Terms of Use | Privacy Policy Copyright © 2002-2014 Classof1. All rights reserved.
Live chat assistance with free trade protection homework help
Live chat assistance with free trade protection homework help