How trade makes nation '' better of

How trade makes nation '' better off''
Now of we assume the us has a comparative advantage in wheat and the eu in wine, the production possibilities will have the shape as in figure 15-7. Before trade, the isorevenue line (bt) will be steep in the us, reflecting the high price of wine relative to grain because the us can produce a large amount of grain. The isorevenue line (bt') in the eu will be relatively flat,reflecting the low price of wine as wine is plentiful.
After trade, ingnoring transportasion and handling charges, the prices of grain and wine should equalize in the two areas. Prices tend to equalize because us will export grain and its prices will increase because total demand for us grain has increased. Supplies of grain have increased in the importing country, so therefore the price of grain should fall. Also, the EU export wine to the us, which will increase its price in the eu and decrease its price in the us. The after trade isorevenue line are shown by at and at' ,which have the same slope. Because market prices change after trade opens, the production of grain increases in the us from 0f and 0f' and the production of wine falls from 0w and 0w'. In the eu, the production of grain falls from 0f to 0f' and the production of wine increases from 0w to 0w'. Consumers were in equilibrium on indifference curve i0 before trade, consuming all that was originally produced. Now that trade has taken place, consumers, reach a higher indifference curve, i1 rather than i0 (figure 15-7).
Consumers in the us are consuming 0f’’ of grain after trade and 0w’’ gallons of wine. N after tarde, the us produces 0f' and consumes only 0f'' bushels of grain, so it export f' to f'' bushels of grain to the eu. To do this it import f' to f'' bushels of grain , which equals the amount the united states exported. Thus, export equal import. The eu produces 0w' gallons of wine, but consumes only 0w'' gallons of wine and exsports the difference (w' to w'') to the us. The us consumes 0w '' gallons of wine but produces only 0w' and thus imports w' to w'' gallons from the EU.
The importent concept is that international trade occurs because of differences in the prices of products in the two countries before trade. Consumers benefit by being able to consume more goods and services than the resources of a country could produce, allowing them to attain a higher level of satisfaction. It is important to remember that the goal of any production is to increase satisfaction (utility).
Many countries set up barriers to trade which they inteid to "protec" a domestic industry, but which really negate the beneficial to special interest group that use political pressure to maintain their market position. Because tarrifs are determined by congress, the tariff system in the united states reflects a variety of political interests.

How trade makes nation '' better off''
Now of we assume the us has a comparative advantage in wheat and the eu in wine, the production possibilities will have the shape as in figure 15-7. Before trade, the isorevenue line (bt) will be steep in the us, reflecting the high price of wine relative to grain because the us can produce a large amount of grain. The isorevenue line (bt') in the eu will be relatively flat,reflecting the low price of wine as wine is plentiful. 
After trade, ingnoring transportasion and handling charges, the prices of grain and wine should equalize in the two areas. Prices tend to equalize because us will export grain and its prices will increase because total demand for us grain has increased. Supplies of grain have increased in the importing country, so therefore the price of grain should fall. Also, the EU export wine to the us, which will increase its price in the eu and decrease its price in the us. The after trade isorevenue line are shown by at and at' ,which have the same slope. Because market prices change after trade opens, the production of grain increases in the us from 0f and 0f' and the production of wine falls from 0w and 0w'. In the eu, the production of grain falls from 0f to 0f' and the production of wine increases from 0w to 0w'. Consumers were in equilibrium on indifference curve i0 before trade, consuming all that was originally produced. Now that trade has taken place, consumers, reach a higher indifference curve, i1 rather than i0 (figure 15-7). 
Consumers in the us are consuming 0f’’ of grain after trade and 0w’’ gallons of wine. N after tarde, the us produces 0f' and consumes only 0f'' bushels of grain, so it export f' to f'' bushels of grain to the eu. To do this it import f' to f'' bushels of grain , which equals the amount the united states exported. Thus, export equal import. The eu produces 0w' gallons of wine, but consumes only 0w'' gallons of wine and exsports the difference (w' to w'') to the us. The us consumes 0w '' gallons of wine but produces only 0w' and thus imports w' to w'' gallons from the EU. 
The importent concept is that international trade occurs because of differences in the prices of products in the two countries before trade. Consumers benefit by being able to consume more goods and services than the resources of a country could produce, allowing them to attain a higher level of satisfaction. It is important to remember that the goal of any production is to increase satisfaction (utility). 
Many countries set up barriers to trade which they inteid to "protec" a domestic industry, but which really negate the beneficial to special interest group that use political pressure to maintain their market position. Because tarrifs are determined by congress, the tariff system in the united states reflects a variety of political interests.

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How trade makes nation '' better off''Now of we assume the us has a comparative advantage in wheat and the eu in wine, the production possibilities will have the shape as in figure 15-7. Before trade, the isorevenue line (bt) will be steep in the us, reflecting the high price of wine relative to grain because the us can produce a large amount of grain. The isorevenue line (bt') in the eu will be relatively flat,reflecting the low price of wine as wine is plentiful. After trade, ingnoring transportasion and handling charges, the prices of grain and wine should equalize in the two areas. Prices tend to equalize because us will export grain and its prices will increase because total demand for us grain has increased. Supplies of grain have increased in the importing country, so therefore the price of grain should fall. Also, the EU export wine to the us, which will increase its price in the eu and decrease its price in the us. The after trade isorevenue line are shown by at and at' ,which have the same slope. Because market prices change after trade opens, the production of grain increases in the us from 0f and 0f' and the production of wine falls from 0w and 0w'. In the eu, the production of grain falls from 0f to 0f' and the production of wine increases from 0w to 0w'. Consumers were in equilibrium on indifference curve i0 before trade, consuming all that was originally produced. Now that trade has taken place, consumers, reach a higher indifference curve, i1 rather than i0 (figure 15-7). Consumers in the us are consuming 0f’’ of grain after trade and 0w’’ gallons of wine. N after tarde, the us produces 0f' and consumes only 0f'' bushels of grain, so it export f' to f'' bushels of grain to the eu. To do this it import f' to f'' bushels of grain , which equals the amount the united states exported. Thus, export equal import. The eu produces 0w' gallons of wine, but consumes only 0w'' gallons of wine and exsports the difference (w' to w'') to the us. The us consumes 0w '' gallons of wine but produces only 0w' and thus imports w' to w'' gallons from the EU. The importent concept is that international trade occurs because of differences in the prices of products in the two countries before trade. Consumers benefit by being able to consume more goods and services than the resources of a country could produce, allowing them to attain a higher level of satisfaction. It is important to remember that the goal of any production is to increase satisfaction (utility). Many countries set up barriers to trade which they inteid to "protec" a domestic industry, but which really negate the beneficial to special interest group that use political pressure to maintain their market position. Because tarrifs are determined by congress, the tariff system in the united states reflects a variety of political interests.

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Bagaimana perdagangan membuat bangsa 'lebih baik' '
Sekarang dari kita menganggap kita memiliki keunggulan komparatif dalam gandum dan eu dalam anggur, kemungkinan produksi akan memiliki bentuk seperti pada gambar 15-7. Sebelum perdagangan, garis isorevenue (bt) akan curam di AS, yang mencerminkan tingginya harga anggur relatif terhadap gandum karena kita dapat menghasilkan sejumlah besar biji-bijian. Garis isorevenue (bt ') di eu akan relatif datar, yang mencerminkan harga rendah anggur sebagai anggur berlimpah.
Setelah perdagangan, ingnoring Transportasion dan biaya penanganan, harga gandum dan anggur harus kedudukan di dua daerah. Harga cenderung untuk menyamakan karena kita akan mengekspor gandum dan harga akan meningkat karena permintaan total bagi kita gandum telah meningkat. Persediaan gandum telah meningkat di negara pengimpor, jadi karena harga gabah harus jatuh. Juga, Uni Eropa ekspor anggur ke kita, yang akan meningkatkan harga di eu dan menurunkan harga di kami. Setelah baris isorevenue perdagangan ditunjukkan oleh di dan di ', yang memiliki kemiringan yang sama. Karena harga pasar berubah setelah perdagangan dibuka, produksi gabah meningkat dalam kita dari 0f dan 0f dan produksi anggur jatuh dari 0W dan 0W '. Dalam eu, produksi gabah jatuh dari 0f ke 0f 'dan produksi meningkat anggur dari 0W ke 0W'. Konsumen berada di ekuilibrium pada kurva indiferen I0 sebelum perdagangan, memakan semua yang pada awalnya diproduksi. Sekarang perdagangan yang telah terjadi, konsumen, mencapai kurva indiferens yang lebih tinggi, i1 daripada I0 (gambar 15-7).
Konsumen di AS mengkonsumsi 0f '' dari biji-bijian setelah perdagangan dan 0W '' galon anggur. N setelah tarde, yang kita menghasilkan 0f 'dan hanya mengkonsumsi 0f' 'gantang gandum, sehingga ekspor f' untuk f '' gantang gandum ke eu. Untuk melakukannya ini impor f 'untuk f' 'gantang gandum, yang sama dengan jumlah united states diekspor. Dengan demikian, ekspor sama impor. The eu menghasilkan 0W 'galon anggur, tetapi hanya mengkonsumsi 0W' 'galon anggur dan exsports perbedaan (w' untuk w '') ke kita. The kita mengkonsumsi 0W '' galon anggur tetapi hanya menghasilkan 0W 'dan dengan demikian impor w' untuk w '' galon dari Uni Eropa.
Konsep importent adalah bahwa perdagangan internasional terjadi karena perbedaan harga produk di kedua negara sebelum perdagangan. Konsumen mendapatkan keuntungan dengan bisa mengkonsumsi lebih banyak barang dan jasa dari sumber daya suatu negara bisa menghasilkan, yang memungkinkan mereka untuk mencapai tingkat yang lebih tinggi kepuasan. Penting untuk diingat bahwa tujuan dari setiap produksi adalah untuk meningkatkan kepuasan (utilitas).
Banyak negara mengatur hambatan perdagangan yang mereka inteid untuk "proteksi" industri dalam negeri, tapi yang benar-benar meniadakan bermanfaat bagi kelompok kepentingan khusus yang menggunakan tekanan politik untuk mempertahankan posisi pasar mereka. Karena tarrifs ditentukan oleh kongres, sistem tarif di Amerika Serikat mencerminkan berbagai kepentingan politik.

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