Suppose That in the Absence of Trade, the U

question 47

Essay

Suppose that in the absence of trade, the U.S. price for bicycles was higher than the world price for bicycles. Would allowing international trade mean that the United States would import or export bicycles? Who in the United States would benefit and who would lose with a free trade policy, and would the gains be greater than the losses?

---

Definitions:

Displacement

In psychology, a defense mechanism involving the transfer of an emotional response from the original stimulus to a substitute target.

Compensation

Involves all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Defense Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and the perception of internal or external stresses.

Anxiety

A mental health condition characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.