Interdependent trade
MINI CASE STUDY FOR: Interdependence and Gains from Trade
Discussion Questions:
1. Why is interdependence in the MENA area seen as important?
Applying the interdependence in MENA region would help overcoming several problems that have been affecting the economic growth in the region. The production rate (Quantity) is sometimes not even enough to fulfill the region’s needs, which forces them to import those products. The quality of produced products in the region is not as high enough. Add to this the increasing unemployed unskilled labors that results in increasing the internal problems and crimes. The high cost of products and services in the MENA region is a result of the lack of interdependency. The region has limited incomes and resources and the economic growth is highly affected by the lack of regional integration. That all results in political instability in the region which has been notices in the recent years.
The most important output from applying the interdependency and regional integration will be the specialization. Being specialized will help the region to gain experience and focus on producing certain products. That results in high quality products, large production rate; that supplies the region with its need and enough to export and trade off; and also reduces and kills the unemployed labors.
2. What would be some of the economic impacts and benefits of the actions being taken by the US, EU and other states? Those actions being taken by the US, EU, and other states help achieving the comparative advantage for each region in certain specialized products which will lead to producing higher qualities and quantities at lower prices. Applying these actions provide those regions with variety of products and services, increasing competition, preventing market failures, and offering different qualities and prices. It will also enhance more employing opportunities for those unemployed labors. There will be a well noticed change in the
Discussion Questions:
1. Why is interdependence in the MENA area seen as important?
Applying the interdependence in MENA region would help overcoming several problems that have been affecting the economic growth in the region. The production rate (Quantity) is sometimes not even enough to fulfill the region’s needs, which forces them to import those products. The quality of produced products in the region is not as high enough. Add to this the increasing unemployed unskilled labors that results in increasing the internal problems and crimes. The high cost of products and services in the MENA region is a result of the lack of interdependency. The region has limited incomes and resources and the economic growth is highly affected by the lack of regional integration. That all results in political instability in the region which has been notices in the recent years.
The most important output from applying the interdependency and regional integration will be the specialization. Being specialized will help the region to gain experience and focus on producing certain products. That results in high quality products, large production rate; that supplies the region with its need and enough to export and trade off; and also reduces and kills the unemployed labors.
2. What would be some of the economic impacts and benefits of the actions being taken by the US, EU and other states? Those actions being taken by the US, EU, and other states help achieving the comparative advantage for each region in certain specialized products which will lead to producing higher qualities and quantities at lower prices. Applying these actions provide those regions with variety of products and services, increasing competition, preventing market failures, and offering different qualities and prices. It will also enhance more employing opportunities for those unemployed labors. There will be a well noticed change in the