Answer:
The United States should increase domestic manufacturing to promote prosperity.
Explanation:
Excerpt:
“The creation of a home market is not only necessary to procure for our agriculture a just reward of its labors, but it is indispensable to obtain a supply of our necessary wants. . . . Suppose no actual abandonment of farming, but, what is most likely, a gradual and imperceptible employment of population in the business of manufacturing, instead of being compelled to resort to agriculture. . . . Is any part of our common country likely to be injured by a transfer of the theatre of [manufacturing] for our own consumption from Europe to America?
“. . . Suppose it were even true that Great Britain had abolished all restrictions upon trade, and allowed the freest introduction of the [products] of foreign labor, would that prove it unwise for us to adopt the protecting system? The object of protection is the establishment and perfection of the [manufacturing] arts. In England it, has accomplished its purpose, fulfilled its end. . . . The adoption of the restrictive system, on the part of the United States, by excluding the [products] of foreign labor, would extend the [purchasing] of American [products], unable, in the infancy and unprotected state of the arts, to sustain a competition with foreign fabrics. Let our arts breathe under the shade of protection; let them be perfected as they are in England, and [then] we shall be ready . . . to put aside protection, and enter upon the freest exchanges.”
Henry Clay, speaker of the House of Representatives, speech in Congress, 1824
The opportunity cost of a computer in China is 2 cars.
If the two countries specialize and trade, the country that will import is the United States because it has a higher opportunity cost in the production of computers.
The terms of trade would be beneficial to both China and the United States.
If productivity in China doubles, the country that has a comparative advantage in the production of cars is the United States.
<h3>What is comparative advantage?</h3>
Comparative advantage is when a country produces a good at a lower opportunity cost when compared to other countries.
A country should specialise in producing a good for which it has comparative advantage and import goods for which it does not have comparative advantage.
For China:
Opportunity cost in producing computers = 1200 / 200 = 6 cars
Opportunity cost in producing cars = 200 / 1200 = 1/6 computers
For United States:
Opportunity cost in producing computers = 400 / 200 = 2 cars
Opportunity cost in producing cars = 200 / 400 = 1/2 computers
To learn more about comparative advantage, please check: brainly.com/question/25812820
<span>Citizens are expected to actively participate in the political process, either by pointing sides, choosing parties or voting.</span>
<span>All of the following should be included on the self stick labels you prepare before attending a college fair except:
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