IB Economics HL 2010-2012

This article is about how the Argentinian government is protecting the domestic production of BlackBerrys in order to "cut foreigners' share of Argentina's mobile-phone market". Even though this seems to be a valid case of protectionism, it will "cost $23m upfront, plus $4,500-5,000 a month per worker, some 15 times more than in Asia". This is because Asian laborers and factories have already perfected the production of cell phones. They have the 'factor endowment' in the production of cell phones. This is because to start a factory in Asia, the price is already low. Also the labor is cheap and skilled. The start up price for this endeavor is already going to be $23m, they will also have to train the workers and pay them more than they would if the Argentinian companies outsourced the production to Asia. Another problem with the domestic production of cell phones in Argentina is that Argentina, at this moment, is not known for their production of cell phones. They are not a place in which companies like Motorola or Nokia look for to manufacture their products.  Argentina could do this but it will take them a long time before they clean of their capital debt. In the short run, they will not make any money but nobody knows for sure what the long run has in store for this unorthodox market. In my opinion, Argentina should focus its money on something that will be profitable not only in the long run but also in the short run. This is possible. Argentina has a factor endowment, its tourism. It does not take that much money and effort to increase the amount of tourism in a country that is obviously beautiful and worth seeing. Even if they were not to invest in tourism, they could focus on, for instance, the exporting of more beef or fish. These are things that people already are accustomed to getting from Argentina. It all bundles down to this: when you think about Japanese production, you think cars and phones. When you think about Argentinian production, you

The Detroit News reports on the USA-South Korea free trade agreement

the free trade between Korea and US have barrier from politics.

The U.S. has notified the WTO of Chinese subsidy programs. The U.S. claims that it is a violation of free trade rules and causes an unfair competition.

The United States is taking action against china because China is attempting to manipulate their currency so they always have an advantage in trade.

This article is saying how a land as barren as that of Nevada, can still make for good trade. Nevada has made itself a place where questionable events may be held. By doing this they give them self the comparative advantage in tourism. Tourism may not seem like a good but it is. Nevada, by hosting these events, give the tourist an incentive to come. Nevada has made itself more profitable than other tourist destinations by having things such as Boxing and Prostitution. In the interstate/international market for tourism, Nevada has made itself a top competitor.  In the economic terms, Nevada can produce certain services (prostitution, casinos, boxing,...etc) with less opportunity costs (prison, fines, fees,...etc) than the leading competitor. Also it is in a prime location. People from all over the states can fly or drive to Nevada to see the shows and events that would be illegal elsewhere.  This truly shows that with smart planning, any country/entity has the ability to trade successfully. 

This article regards China as responsible for the recession in the USA because China causes unfair international trade where other countries do not stand a change against its labour force.

This article is about China imposing a heavy trade restriction (tariffs - $1 billion) on the import of chicken from the United States. The imposition of tariffs would lead to a loss in 300 000 jobs in the poultry industry in the United States.

The New York Times reports on the United States car company Ford exporting its cars to Russia.

President Obama is lobbying Germany and France to take coordinated measures to prevent Greece's woes from engulfing its neighbors.

In this article, we can see that united states has its own reasons to claim now to pursue such a strategy, because it has run large deficits for most of the last three decades, become the largest debtor country and accommodated other countries' desire for export-led prosperity.

clothing business by Faruque Hassan enjoying low costs of production.

The Department of Social Protection (Ireland) has provided an extra 4.6 million Euros for parents of students who are struggling to afford uniform expenses.

The article is about the increase in government expenditures on defense.

about how there will be no more support for jobs sent overseas until tere is more unemployment benefits for americans.

The budget in South Carolina is still being debated, with one of the most controversial topics being cuts to welfare payments.

The unemployment rate has been consistently dropping in Nevada, showing that the demand in the labor market is probably increasing again after the recession.

"Chancellor tells Tory conference in Birmingham that benefits cap will ensure no unemployed family receives more money than families who work" (from the article)

"The government's complicated changes to tax and benefits have begun, squeezing most households in real terms" (from the article)