26 In 2015 Donald Trump stated that When did we beat Japan a

26. In 2015, Donald Trump stated that, \"When did we beat Japan at anything? They send their cars over here by the millions, and what do we do? When was the last time you saw a Chevrolet in Tokyo? It doesn\'t exist, folks.\" Trump\'s argument fails to address which of the following economic arguments (i.e., arguments based on a correct interpretation of economic theory): a. Japan may have the comparative advantage in manufacturing cars, but the U.S. may export different goods to Japan b. Americans in outsourced industries will be able to easily find new jobs in industries focused on exports. c. Competition from other nations is unfair because other countries don\'t necessarily have the same costs of production. d. All of the above. 27. In 2016, Hillary Clinton stated the following: \"My message to every worker in Michigan and across America is this. I will stop any trade deal that kills jobs or holds down wages, including the Trans-Pacific Partnership (Trade Agreement].\" Which of the following is a reason why Clinton\'s statement is misleading? a. Trade deals do not have an impact on wages. b. Trade deals that reduce barriers to trade will reduce wages in all sectors of the economy. c. Trade deals that reduce barriers to trade may not change the composition of jobs (i.e., \"kill\" jobs) within a country. d. Any trade deal that changes the terms of trade between countries will change the composition of jobs within a country.

Solution

Answer 26. a)

Japan may have comparatIve advantage in cars but US May export other items in which it specialises.

Specialisation and comparative advantage which form the basis of international trade and Adam Smith and market should never be forgotten.

If US manufactures cars and does not trade with Japan, it will hurt itself only and in turn the world economy.

Trade is everytHing for progress.