Economics Paper 2 Essay Example | Topics and Well Written Essays - 500 words

Economics Paper 2 - Essay Example International Trade costs U.S job: International trade benefits both the countries. Standard of living of both countries increase, the countries can utilize their labor in something that is surplus and create boom in that product. National debt will burden the future: It is not always that national debts that burden the country. If the Government utilizes the funds in development of the future generation ; Even though the future generation will have to pay a little more tax but they will be duly benefited. Sweat Shops exploit workers: In poor countries getting a sweat shop job is better than not getting any job at all. By improving the work place amenities the cost of production will increase and the manufacturer will try and balance out their expenditure by reducing employment. This will lead to the employees losing their job. Trade Deficits means weak economy: In a booming economy there is more money to buy. Hence the Trade Deficits are seen. Also when people invest in a booming economy the money flow is outwards.So the money appreciates making it expensive for the foreign buyers. So Trade Deficit is not a sign of weak economy Monopolies charge any price:: It is not always that monopoly companies charge the highest. To make their products sell they may even charge low. The consumer may also benefit by the monopoly as it gives them a specialized market of that particular good in a competitive price. Manufacturers make products that wear out so that they can sell more: Even if the companies increase the price of products lasting longer, competition will make them reduce their price, thus benefiting the consumer. Money comes out of printing press: Most of the money in US economy is not in hard cash but in a/c in banks. When they lend out loans and in turn gets more checques.That way it increases its money making. But if they