Economics: The Basics 1st Edition by Mike Mandel

Exercise 3

This chapter identifies four different gains from trade: lower prices of goods and services, access to natural resources, access to global markets, access to new ideas. For each of the following situations, say which gain from trade is the most important, and explain why.
a) In 2007 Microsoft received $20 billion in revenue from customers outside the United States
b) The U.S. imports 94 percent of the platinum that it uses.
c) The Wii video game machine, designed in Japan by Nintendo, has been a big hit in the United States.
d) The price of furniture in the U.S. has dropped as more has been imported from China.