International Economics Question?
A. +$3,375 Consumer surplus can be shown graphically as the area above the market price, but below the demand curve. For this problem, you want to figure domestic consumption before and after trade is introduced. Before trade, you have equilibrium at the point where QS=QD. So set your equations equal to each other: -60 + 3P = 390 - 2P 5P = 450 P = 90 Equilibrium price before trade is $90. Plug that number back into your equations, you get equilbrium quantity = 210. So before trade, the price is $90, the quantity is 210. Now introduce trade. With trade, domestic consumers can now purchase skateboards at the international price of $75. Plug this number into the demand function, you get QD = 390 - 2(75) = 390 - 150 = 240. Domestic consumers will now purchase 240 skateboards at a price of $75. Graphically, what this all looks like is a demand / supply graph where the curves intersect at P=$90 and Q=210. Then a horizontal line (representing the international price) at P=$75, which will intersect the demand curve at Q=240. The difference in consumer surplus (the area below the demand curve but above the price) will be the area of the rectangle from the price axis to Q=210, between P=90 and P=75, plus the area of the triangle between the points (P=90 Q=210), (P=75 Q=210), and (P=75, Q=240). These areas are: for the rectangle, (90-75) x 210 = 3150; for the triangle, 1/2 of (90-75) x (240-210) = 225. 3150 + 225 = 3375. This is the change in consumer surplus; it is a positive number because it is in addition to the consumer surplus before trade.
What are the key differences between domestic and international trade and what are some examples?
Domestic trade means buying and selling of goods And services or engage in a business activities within an your national border. While International Trade enables the fuller utilization of resources. Underdeveloped countries are not in a position to use their mineral resources, so they export their raw materials to developed countries where the same are needed the most.2) Because of International Trade the trading partners gets goods cheaper than otherwise. Because every country produce those goods in the production of which it has to occur less comparative cost.3) By virtue of International Trade consumers gets an opportunity to consume a large variety of goods produced by different countries. This improves the quality of life.4) International trade enables every country to dispose off their surplus production. Some countries produce more than their own requirement. They sell this surplus production in other countries and avoid the occurrence of deflationary pressures in the domestic economy.5) International Trade encourages countries to compete with each other in the production of different kinds of goods at low cost of production. Competitiveness stimulates productivity.6) It widens the extent of market. Every country makes an attempt to produce different goods in large quantity. This induces production on large scale and thereby generates economies of scale.7) International Trade stimulates the spirit of competition among the entrepreneurs. Novel techniques of production are devised to produce quality goods at low cost. Advancement of technology is the key to economic development.8) International Trade promotes mutual cooperation among different countries. It creates an atmosphere of goodwill and friendship among the trading countries.
How does domestic economy and international trade affect strength of the economy?
I have been involved with international trade for over 16 years and study world economics as a hobby so please allow me to share some insight: The U.S. dollar, still the benchmark for world currency, has been declining in value the past several years. A detriment to U.S. consumers and U.S. companies that import products, the weakening dollar benefits some players in the global marketplace. Current economic factors that may be signaling recessionary conditions in the U.S. economy and could undermine confidence of U.S. dollar-based assets include the downturn in housing, turbulence in the equity markets and job woes. Additional interest rate cuts by the U.S. Federal Reserve could further erode the return of investors as lower interest rates may produce additional inflationary pressures, lowering the dollar’s value. Also, continued budget and trade deficits tend to weaken the U.S. dollar. The weak dollar is encouraging foreign manufacturers to set up factories in the U.S., bringing jobs and other economic benefits. The U.S. has the biggest impact on the global economy and its monetary unit value, and fluctuation has the greatest effect relative to other currencies. The value affects company profits, budgeting and manufacturing costs. It has ramifications on capital investment, plant openings and closings. For example, some companies that have outsourced customer service and call centers to India have returned these centers to the U.S., since the weak dollar has eroded the cost benefits of operating overseas. As you can see, International trade is detrimental to our domestic economy as it decreases the power of the dollar which in turn affects your ability to afford things at reasonable prices. When factoring all this in to your dream of owning a home, Im sure you can see that asset purchases like a home can become out of reach for many. The solution is for Americans to start consuming less and producing or rather innovating more. Instead of spending $500 billion on developing an apocalyptic defense systems, money should be spend on providing access to education so we can 'create' value that others will have to depend on for sustenance thus creating jobs, strong industry, and a strong dollar. Im sure you've been told what your grandfathers quarter could buy at the time...something to think about. Good luck on your paper!
How can I activate an Axis Bank debit card for international use?
If you are holding VISA/MasterCard then your card is already activated whether you do domestic transaction or international transaction. There is no separate procedure for enabling international transactions. however, you should check it through online banking whether you have enabled your card transaction profile for domestic and international one or just the domestic (if the Axis bank is having any such profile setting in the internet banking).Usually when you are making international transaction at outside merchant, then you should look whether the aid merchant is accepting VISA/MasterCard and if yes then the procedure is same as it is in domestic transaction where you put in your PIN No. and the payment is done. The procedure is same for ATM transaction also. I personally don’t know about Axis Bank’s system of transaction processing but the which I am telling you is followed by most of the banks in which if you have a global/international level debit card, then there is no separate requirement to enable or authenticate it for global transactions.
Can we book seperate flight tickets for international and domestic flights?
For a generic situation, I'll agree with the other answers. However, in your specific case, you should be ok buying separate tickets. You are right in that your tickets will be cheaper if you separate them. If you buy your tickets all the way to VTZ (Vizag), your bags will be tagged to VTZ. However, you have to collect your luggage at Delhi and clear customs before checking it back again into the next flight. Therefore, the issue of checking luggage again is not a factor.Some carriers (Jet airways) have a booth along the way from customs to the domestic terminal. They will allow you to surrender the luggage at that booth if you have tickets with them or with them and a codeshare airlines. This allows you not to lug around your bags all over the place.When you book your flights from DEL to VTZ, make sure you read the fine print so that you know you are buying a ticket with fares that allows checked in luggage (Indigo calls it the check in luggage fare). Otherwise, the fare might be cheap, but they'll charge you an arm and a leg extra for the luggage.If you have relatives in India, have them buy the tickets in Rupees (you get cheaper fares) and reimburse them.
What is difference between international unlocked and US factory unlocked smartphones?
International unlocked phones are usually allowed to work with any SIM card in the world, except domestic SIM cards other than the one from the original network carrier of the phone. Factory unlocked phones can be used anywhere they came unlocked from the factory and don't have any network restrictions. If one needs to unlock a phone there are several ways:You can ask your current carrier to unlock it. The law says they are obliged to do it, but the bad thing is that your phone must NOT be under contract.You can go to repair shop. They will unlock your phone by cable using a special software. The bad thing is that you have to leave your phone there for a few hours.You can use a third party phone unlocking service like https://www.unlockradar.com or https://www.unlockplus.com. They will search and provide you with an genuine unlock code from the manufacturer's database. This is the safest method to unlock any phone.Unlock Phone | Unlock Codes | Cell Phone Unlocking - UnlockRadar
When talking about shipping mail, what does domestic and international shipping mean?
domestic = to or from inside your country (like from Houston to L.A.). international = to or from some other country (like Houston to London).