17-9 (Argument for Trade Restrictions) Explain the national defense, decline industries and infant industry arguments for protecting a domestic industry form international competition.
17-10 (Argument for Trade Restrictions) Firms hurt by lower priced imports typically argue that restriction trade will save U.S. jobs. What’s wrong with this argument? Are there ever any reasons to support such trade restrictions?
18—1 (Balance of payments) The following are hypothetical data for the U.S. balance of payments. Use the data to calculate each of the following:
a. Merchandise trade balance
b. Balance on goods and services
c. Balance or current account
d. Financial account balance
e. Statistical discrepancy
Billions of Dollars
Merchandise Exports 350.0
Merchandise Imports 2,425.0
Service exports 2,145.0
Service Imports 170.0
Net Income and Net transfers 221.5
Change in U.S.- owned assets abroad 245.0
Chance in foreign-owned assets in U.S. 100.0
18-2 (Balance of Payments) Explain where in the U.S. balance of payments an entry would be recorded for each of the following:
f. A Hong Kong financier buys dome U.S. corporate stock.
g. A U.S. tourist in Paris buys some perfume to take home.
h. A Japanese company sells machinery to a pineapple company in Hawaii.
i. U.S. farmers gave food to starving children in Ethiopia.
j. The U.S. Treasury sells a bond to a Saudi Arabian prince.
k. A U.S. tourist flies to France on Air France.
l. A U.S company seals insurance to a foreign firm.