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Advantages Of Marginal Opportunity Costs Of The US

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1. Considering what you have learned about “comparative advantage” and relative “marginal opportunity costs,” discuss the advantages and disadvantages to all involved parties (American workers, American consumers, foreign workers, and foreign consumers) of continued importation and acceptance of foreign made goods into U.S. markets.

Through the last 50 years we have seen other countries such as Japan, China and even India join in with America in becoming economic powerhouses. America once upon a time was a manufacturing power house. Right now, there is a good balance with both importing and exporting. If we were to not allow imports than the prices we would see for US customers would start to go up. An advantage to having imports is that it is a lot cheaper for foreign countries to produce goods then export them out to us. As Americans we aren’t about working for lower wages with this would make the production of the same goods twice as high for us to produce. This is one of the reasons that a lot of American companies are moving distribution outside of the United States.
2. Compare and contrast, the advantages and disadvantages of instituting an import tariff, or an outright ban on the importation of certain goods into U.S. markets. …show more content…

Another advantage is going to be that this increases domestic employment as the consumption of the goods increases so does the demand for them. A disadvantage for the importation of goods into U.S. markets would be having high tariffs and quotas can result in a trade war between nations. Another disadvantage to this would be that the higher prices for imported goods on then passed down onto the consumer making the product or goods cost more. So, in other words, the customer pays extra for

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