Comments on: What’s Korea’s “beef” with the US on free trade? http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/ for students and teachers of AP and IB Economics Wed, 17 Mar 2010 01:19:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: diana.ecsl1.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9895 diana.ecsl1.f09 Mon, 25 Jan 2010 01:09:27 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9895 Alison, great job answering all the questions. You really understand what this article is all about. I love how you outlined questions 3 and 4. Again, it all comes down to short term vs. long term. Alison, great job answering all the questions. You really understand what this article is all about. I love how you outlined questions 3 and 4. Again, it all comes down to short term vs. long term.

]]> By: diana.ecsl1.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9894 diana.ecsl1.f09 Mon, 25 Jan 2010 01:07:22 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9894 Michael that is an excellent point you made regarding question 4. As you said, many politicians solely care about re-election hence why they focus on the short-term only. This is the sad but simple truth. Michael that is an excellent point you made regarding question 4. As you said, many politicians solely care about re-election hence why they focus on the short-term only. This is the sad but simple truth.

]]> By: diana.ecsl1.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9893 diana.ecsl1.f09 Mon, 25 Jan 2010 01:03:20 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9893 1) How does the graph illustrate the concept of “winners and losers from free trade”? The countries imposing the tariffs are losers while the exporting countries are the winners. This is due to the fact that quantity demanded decreases when import taxes need to be paid. According to the graph, “the removal of a tariff on Korean automobiles will result in a decrease in output by American firms from Q2 to Q1, an increase in imports from Q4 – Q2 to Q3 – Q1, and an increase in consumer surplus, efficiency, and better overall allocation of resources in America.” – 2) Who gains and who loses from free trade with the US within Korea? If there is greater demand for imported automobiles, US workers will suffer because there will be a decrease in production of American automobiles. However, consumers will benefit as they will not have to pay as much for their cars. Korea also benefits because they gain revenue from the automobile exports. – 3) Is it possible that a free trade agreement with Korea would actually create jobs in America? Explain… Yes it is possible. In the short-term jobs will be lost as there will be a decrease in output by American automobile industries. Thus workers will be laid off. In the future however those lost jobs may be relocated in another industry, perhaps relating to car sales or control of exports. So over time it will all balance out and in the long-term jobs will be created. – 4) Why do politicians oppose free trade deals that would result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers? Politicians fail to see the bigger picture and think long-term. The first thought that pops in their minds is that jobs will be lost. That immediately dissuades them from accepting free trade deals. Politicians tend to not be well informed when it comes to economics which tends to be a problem since they can have such influential impacts on the economy. Because they simply do not understand the specifics of economic policies, politicians miss opportunities that result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers. 1) How does the graph illustrate the concept of “winners and losers from free trade”?

The countries imposing the tariffs are losers while the exporting countries are the winners. This is due to the fact that quantity demanded decreases when import taxes need to be paid. According to the graph, “the removal of a tariff on Korean automobiles will result in a decrease in output by American firms from Q2 to Q1, an increase in imports from Q4 – Q2 to Q3 – Q1, and an increase in consumer surplus, efficiency, and better overall allocation of resources in America.”
–

2) Who gains and who loses from free trade with the US within Korea?

If there is greater demand for imported automobiles, US workers will suffer because there will be a decrease in production of American automobiles. However, consumers will benefit as they will not have to pay as much for their cars. Korea also benefits because they gain revenue from the automobile exports.
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3) Is it possible that a free trade agreement with Korea would actually create jobs in America? Explain…

Yes it is possible. In the short-term jobs will be lost as there will be a decrease in output by American automobile industries. Thus workers will be laid off. In the future however those lost jobs may be relocated in another industry, perhaps relating to car sales or control of exports. So over time it will all balance out and in the long-term jobs will be created.
–

4) Why do politicians oppose free trade deals that would result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers?

Politicians fail to see the bigger picture and think long-term. The first thought that pops in their minds is that jobs will be lost. That immediately dissuades them from accepting free trade deals. Politicians tend to not be well informed when it comes to economics which tends to be a problem since they can have such influential impacts on the economy. Because they simply do not understand the specifics of economic policies, politicians miss opportunities that result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers.

]]> By: Kenneth.ecsla.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9886 Kenneth.ecsla.f09 Sat, 23 Jan 2010 13:40:12 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9886 To alan, Question 2 is right on, since the free trade agreement is not just based on cars, all other firms will be effected, including the beef industry of korea. i dont agree with you regarding question 3 however, i think that if the american people loss jobs do to this agreement, that their resources will be needed in another area, and will potential create jobs. To alan,

Question 2 is right on, since the free trade agreement is not just based on cars, all other firms will be effected, including the beef industry of korea.

i dont agree with you regarding question 3 however, i think that if the american people loss jobs do to this agreement, that their resources will be needed in another area, and will potential create jobs.

]]> By: Kenneth.ecsla.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9885 Kenneth.ecsla.f09 Sat, 23 Jan 2010 13:34:06 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9885 1. The graph shows the concept of winners and losers by showing the supply and demand with and without the tariff. With the tariff the demand for the domestic product is greater. With free trade the tariff will be removed, making the demand for the domestic product to drop. The winners with free trade are the foreign companies and the consumers, since the price is dropped. 2. With the free trade agreement, car companies in Korea will increase sales. Also with this agreement, the beef industry in Korea will lose, since the ban on American beef will be removed and have no tariff. 3. It is possible that free trade with Korea will create jobs for America. With the new products for Korea needing repairs, the service industry in America will increase. Also if Korean imports force American companies to condense, the people who are left without jobs could be used for other jobs, making it a better allocation of resources. 4. Politicians oppose free trade deals because in the short term it is harmful to American companies, as it will cost people their jobs. 1. The graph shows the concept of winners and losers by showing the supply and demand with and without the tariff. With the tariff the demand for the domestic product is greater. With free trade the tariff will be removed, making the demand for the domestic product to drop. The winners with free trade are the foreign companies and the consumers, since the price is dropped.
2. With the free trade agreement, car companies in Korea will increase sales. Also with this agreement, the beef industry in Korea will lose, since the ban on American beef will be removed and have no tariff.
3. It is possible that free trade with Korea will create jobs for America. With the new products for Korea needing repairs, the service industry in America will increase. Also if Korean imports force American companies to condense, the people who are left without jobs could be used for other jobs, making it a better allocation of resources.
4. Politicians oppose free trade deals because in the short term it is harmful to American companies, as it will cost people their jobs.

]]> By: Leyre.ecslb.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9768 Leyre.ecslb.f09 Wed, 13 Jan 2010 06:08:38 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9768 0. How does the graph illustrate the concept of “winners and losers from free trade”? The graph shows ‘’tarrifs on koreans automobiles’’. It shows how the pices of American cars remain the same and the prices of Korean cars decrease. 0. Who gains and who loses from free trade with the US within Korea? Korea is benefited in terms of not having to pay taxes for trade. The prices of cars in the US will decrease because they won’t be paying taxes for trading with Korea. 0. Is it possible that a free trade agreement with Korea would actually create jobs in America? Explain… In a way this will create but will also decrease the amount of jobs. Because, it may need more people working between the relations between Korea and US, but will also affect the car manufacturers who will have to close. Why do politicians oppose free trade deals that would result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers Because this would affect the economy of their country, since the taxes would not flow as well. 0. How does the graph illustrate the concept of “winners and losers from free trade”?
The graph shows ‘’tarrifs on koreans automobiles’’. It shows how the pices of American cars remain the same and the prices of Korean cars decrease.

0. Who gains and who loses from free trade with the US within Korea?
Korea is benefited in terms of not having to pay taxes for trade. The prices of cars in the US will decrease because they won’t be paying taxes for trading with Korea.

0. Is it possible that a free trade agreement with Korea would actually create jobs in America? Explain…
In a way this will create but will also decrease the amount of jobs. Because, it may need more people working between the relations between Korea and US, but will also affect the car manufacturers who will have to close.

Why do politicians oppose free trade deals that would result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers

Because this would affect the economy of their country, since the taxes would not flow as well.

]]> By: Katharine.ecsla.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9762 Katharine.ecsla.f09 Tue, 12 Jan 2010 21:26:27 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9762 Response to Olajumoke.ecslb.f09, I agree that politicians often feel that they must act in a way that is best beneficial for the short run, as that is how long their terms in office are. I think your reasoning that the loss of jobs could override the gain is very probable, and therefore, politicians feel that they must act in a way that benefits people the quickest way possible, which often means not agreeing to free trade deals. It definitely is possible that a free trade agreement with Korea would create some jobs, and I agree that these jobs would require higher educations, for management jobs and the like. It does make it hard on those who cannot afford those advancements in their education, and they are likely to lose their jobs. Response to Olajumoke.ecslb.f09,
I agree that politicians often feel that they must act in a way that is best beneficial for the short run, as that is how long their terms in office are. I think your reasoning that the loss of jobs could override the gain is very probable, and therefore, politicians feel that they must act in a way that benefits people the quickest way possible, which often means not agreeing to free trade deals. It definitely is possible that a free trade agreement with Korea would create some jobs, and I agree that these jobs would require higher educations, for management jobs and the like. It does make it hard on those who cannot afford those advancements in their education, and they are likely to lose their jobs.

]]> By: Katharine.ecsla.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9760 Katharine.ecsla.f09 Tue, 12 Jan 2010 21:21:21 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9760 1. The graph illustrates the concept of “winners and losers from free trade, ” as it shows how the government would gain in the amount of the tariff collected, and the American consumers would end up paying a higher cost due to the tariff. 2. The winners in Korea would be the manufacturers and workers in Korea, as there will be more jobs and more benefits for them. The losers in Korea would be those would were trying to sell Korean cars in Korea, as the revenue would decrease due to the opening of free trade. The beef producers will lose as well, as the opening up of free trade will allow American companies to export their beef cheaply and gain more. 3. It could be possible that a free trade agreement with Korea could create jobs in America, however in short terms, more jobs are more likely to be lost due to car manufacturers leaving the country as it would be cheaper in Korea. However, long term could mean that America reallocates their resources and creates more jobs here in different fields, that we are not exporting to other countries. It really depends on how well the situation is handled and how much time has passed. 4. Politicians oppose free trade deals because they care about their political careers, which usually means how the public views them in the short amount of time that they are in office. Therefore, looking at the big picture is not always ideal for their own benefits, and they feel that manufacturers within America would suffer, and also they could lose political influence if the free trade deal meant loss of jobs during their term in office. 1. The graph illustrates the concept of “winners and losers from free trade, ” as it shows how the government would gain in the amount of the tariff collected, and the American consumers would end up paying a higher cost due to the tariff.
2. The winners in Korea would be the manufacturers and workers in Korea, as there will be more jobs and more benefits for them. The losers in Korea would be those would were trying to sell Korean cars in Korea, as the revenue would decrease due to the opening of free trade. The beef producers will lose as well, as the opening up of free trade will allow American companies to export their beef cheaply and gain more.
3. It could be possible that a free trade agreement with Korea could create jobs in America, however in short terms, more jobs are more likely to be lost due to car manufacturers leaving the country as it would be cheaper in Korea. However, long term could mean that America reallocates their resources and creates more jobs here in different fields, that we are not exporting to other countries. It really depends on how well the situation is handled and how much time has passed.
4. Politicians oppose free trade deals because they care about their political careers, which usually means how the public views them in the short amount of time that they are in office. Therefore, looking at the big picture is not always ideal for their own benefits, and they feel that manufacturers within America would suffer, and also they could lose political influence if the free trade deal meant loss of jobs during their term in office.

]]> By: Olajumoke.ecslb.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9754 Olajumoke.ecslb.f09 Tue, 12 Jan 2010 13:50:11 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9754 Response to Raphael, For question 2, wouldn't bankers and such actually benefit considering this would open up more opportunities for people and companies to actually invest and take out loans? And the article does say that some people in insurance are actually pushing to have the tariffs dropped. This is due to the fact that they actually do benefit from the lack of tariffs Response to Raphael,

For question 2, wouldn’t bankers and such actually benefit considering this would open up more opportunities for people and companies to actually invest and take out loans? And the article does say that some people in insurance are actually pushing to have the tariffs dropped. This is due to the fact that they actually do benefit from the lack of tariffs

]]> By: Olajumoke.ecslb.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9753 Olajumoke.ecslb.f09 Tue, 12 Jan 2010 13:46:14 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9753 1. This graph shows that without the use of tariffs, even though efficiency will be increased, either wages in the automobile industry will fall or jobs will be lost. Though it seems like it will help the overall economy, there is no account for the many new people who will then be requiring unemployment benefits due to this new, more “efficient” economy. In India, they continue to refrain from many modern innovations because it would leave too many people jobless in the country, according to the teachings of Gandhi, they would rather have many people working and happy than an industrious nation with unhappy people who are likely to then commit transgressions against the law. 2. Those who gain are the other complimentary industries to the automobile industry who would now receive free entrance into the S Korean market. Also, the US consumers would also win because the automobile industry would just become more competitive and more efficient. The main loser would be the automobile industry, they would be forced to think more competitively and become more efficient, this means they would have to work harder to maintain their profit and this is not so desirable to firms. 3. Well it is possible that a free trade agreement with Korea would create some jobs, but they would be higher level management jobs and for those with higher educations who would understand how to make deals and understand trade agreements and such. Any of the work which can be done by the uneducated will probably be done in Korea, where labour unions are less evident and people are willing to work for less. 4. Many countries are opposed to this because the loss of jobs in the USA would actually override the gain. The government’s surplus money would then be used for the unemployed, and many government officials have more to gain from the less efficient style of an American based company with little competition than from an actually efficient economy. 1.
This graph shows that without the use of tariffs, even though efficiency will be increased, either wages in the automobile industry will fall or jobs will be lost. Though it seems like it will help the overall economy, there is no account for the many new people who will then be requiring unemployment benefits due to this new, more “efficient” economy. In India, they continue to refrain from many modern innovations because it would leave too many people jobless in the country, according to the teachings of Gandhi, they would rather have many people working and happy than an industrious nation with unhappy people who are likely to then commit transgressions against the law.

2.
Those who gain are the other complimentary industries to the automobile industry who would now receive free entrance into the S Korean market. Also, the US consumers would also win because the automobile industry would just become more competitive and more efficient. The main loser would be the automobile industry, they would be forced to think more competitively and become more efficient, this means they would have to work harder to maintain their profit and this is not so desirable to firms.

3.
Well it is possible that a free trade agreement with Korea would create some jobs, but they would be higher level management jobs and for those with higher educations who would understand how to make deals and understand trade agreements and such. Any of the work which can be done by the uneducated will probably be done in Korea, where labour unions are less evident and people are willing to work for less.

4.
Many countries are opposed to this because the loss of jobs in the USA would actually override the gain. The government’s surplus money would then be used for the unemployed, and many government officials have more to gain from the less efficient style of an American based company with little competition than from an actually efficient economy.

]]> By: Olajumoke.ecslb.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9752 Olajumoke.ecslb.f09 Tue, 12 Jan 2010 13:27:22 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9752 1. How does the graph illustrate the concept of “winners and losers from free trade”? This graph shows that without the use of tariffs, even though efficiency will be increased, either wages in the automobile industry will fall or jobs will be lost. Though it seems like it will help the overall economy, there is no account for the many new people who will then be requiring unemployment benefits due to this new, more "efficient" economy. In India, they continue to refrain from many modern innovations because it would leave too many people jobless in the country, according to the teachings of Gandhi, they would rather have many people working and happy than an industrious nation with unhappy people who are likely to then commit transgressions against the law. 2. Who gains and who loses from free trade with the US within Korea? Those who gain are the other complimentary industries to the automobile industry who would now receive free entrance into the S Korean market. Also, the US consumers would also win because the automobile industry would just become more competitive and more efficient. The main loser would be the automobile industry, they would be forced to think more competitively and become more efficient, this means they would have to work harder to maintain their profit and this is not so desirable to firms. 3. Is it possible that a free trade agreement with Korea would actually create jobs in America? Explain… Well it is possible that a free trade agreement with Korea would create some jobs, but they would be higher level management jobs and for those with higher educations who would understand how to make deals and understand trade agreements and such. Any of the work which can be done by the uneducated will probably be done in Korea, where labour unions are less evident and people are willing to work for less. 4. Why do politicians oppose free trade deals that would result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers? Many countries are opposed to this because the loss of jobs in the USA would actually override the gain. The government's surplus money would then be used for the unemployed, and many government officials have more to gain from the less efficient style of an American based company with little competition than from an actually efficient economy. 1. How does the graph illustrate the concept of “winners and losers from free trade”?
This graph shows that without the use of tariffs, even though efficiency will be increased, either wages in the automobile industry will fall or jobs will be lost. Though it seems like it will help the overall economy, there is no account for the many new people who will then be requiring unemployment benefits due to this new, more “efficient” economy. In India, they continue to refrain from many modern innovations because it would leave too many people jobless in the country, according to the teachings of Gandhi, they would rather have many people working and happy than an industrious nation with unhappy people who are likely to then commit transgressions against the law.

2. Who gains and who loses from free trade with the US within Korea?

Those who gain are the other complimentary industries to the automobile industry who would now receive free entrance into the S Korean market. Also, the US consumers would also win because the automobile industry would just become more competitive and more efficient. The main loser would be the automobile industry, they would be forced to think more competitively and become more efficient, this means they would have to work harder to maintain their profit and this is not so desirable to firms.

3. Is it possible that a free trade agreement with Korea would actually create jobs in America? Explain…

Well it is possible that a free trade agreement with Korea would create some jobs, but they would be higher level management jobs and for those with higher educations who would understand how to make deals and understand trade agreements and such. Any of the work which can be done by the uneducated will probably be done in Korea, where labour unions are less evident and people are willing to work for less.

4. Why do politicians oppose free trade deals that would result in such improvements in efficiency, allocation of resources, and even in the employment opportunities for American workers?

Many countries are opposed to this because the loss of jobs in the USA would actually override the gain. The government’s surplus money would then be used for the unemployed, and many government officials have more to gain from the less efficient style of an American based company with little competition than from an actually efficient economy.

]]> By: Alan.ecsla.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9750 Alan.ecsla.f09 Mon, 11 Jan 2010 22:49:49 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9750 To raphael For question 4, I don't think its that politicians really don't see the benefits of free-trade, since its pretty clear what they are, they just don't think they would be able to stick around long enough to see them through. To raphael

For question 4, I don’t think its that politicians really don’t see the benefits of free-trade, since its pretty clear what they are, they just don’t think they would be able to stick around long enough to see them through.

]]> By: Alan.ecsla.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9749 Alan.ecsla.f09 Mon, 11 Jan 2010 22:48:04 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9749 1. This graph shows what the effect of the tariff would have on the car market with Korea. It shows who would be the "winner" of such a tariff 2. Korean car companies, as well as other firms that would plan to import goods into America would benefit from this free trade agreement. Domestic companies, however, would suffer because consumers would begin to buy more from foreign companies, rather than the ones they were buying from before. 3. The only way a free trade agreement could create American jobs in the long run is if the agreement gave the american companies incentive to improve their products. If they lose too much money, and in turn, make the good they produce more efficient and effective, consumers may demand more of it, leading to more jobs. 4. Because of the short run of each politician, politicians are trying to do whatever they can to get results in the short-term. Because these free trade agreements take a lot of time to start showing benefits, the politician would suffer by putting one into place. 1. This graph shows what the effect of the tariff would have on the car market with Korea. It shows who would be the “winner” of such a tariff
2. Korean car companies, as well as other firms that would plan to import goods into America would benefit from this free trade agreement. Domestic companies, however, would suffer because consumers would begin to buy more from foreign companies, rather than the ones they were buying from before.
3. The only way a free trade agreement could create American jobs in the long run is if the agreement gave the american companies incentive to improve their products. If they lose too much money, and in turn, make the good they produce more efficient and effective, consumers may demand more of it, leading to more jobs.
4. Because of the short run of each politician, politicians are trying to do whatever they can to get results in the short-term. Because these free trade agreements take a lot of time to start showing benefits, the politician would suffer by putting one into place.

]]> By: Laith.ecslb.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9748 Laith.ecslb.f09 Mon, 11 Jan 2010 20:53:10 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9748 The graph illustrates the revenue generated from the tariff, the Korean car sales are hindered by this tariff making them the losers and the winner is the Government collecting the tariff. The Government win because they minimize leakage from their economy by limiting the sales of Korean cars and collecting a tariff from any sales that are made abroad. American industries lose from free trade due to higher competition while the Korean industries win from more sales. Tradition economics means that when money leaks from the cycle the flow of cash becomes less meaning that less people can be funded by the money in the cycle. Leakages lead to less jobs. Free trade increases competition for American producers, considering American companies sponsor the candidates for government the corruption present causes tariffs preventing free trade. The graph illustrates the revenue generated from the tariff, the Korean car sales are hindered by this tariff making them the losers and the winner is the Government collecting the tariff. The Government win because they minimize leakage from their economy by limiting the sales of Korean cars and collecting a tariff from any sales that are made abroad. American industries lose from free trade due to higher competition while the Korean industries win from more sales. Tradition economics means that when money leaks from the cycle the flow of cash becomes less meaning that less people can be funded by the money in the cycle. Leakages lead to less jobs. Free trade increases competition for American producers, considering American companies sponsor the candidates for government the corruption present causes tariffs preventing free trade.

]]> By: raphael.echl.f09 http://welkerswikinomics.com/blog/2008/09/25/whats-koreas-beef-with-the-us-on-trade/comment-page-1/#comment-9743 raphael.echl.f09 Mon, 11 Jan 2010 11:02:30 +0000 http://welkerswikinomics.com/blog/2008/04/20/whats-koreas-beef-with-the-us-on-trade/#comment-9743 To derek.ecslb.f09 In the second question it is asking what will the Skorean loosers be and you talked about the american ones. ANd I agree with your other answers as it was interesting to see how you saw it. To derek.ecslb.f09

In the second question it is asking what will the Skorean loosers be and you talked about the american ones. ANd I agree with your other answers as it was interesting to see how you saw it.

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