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Unit 2 [BU224 Assignment]

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Unit 2 Assignment: Comparative and Absolute Advantage in International Trade Including an Understanding in Multiculturalism

In this assignment, you will be assessed based on the following Outcomes:

GEL-1.02: Demonstrate college-level communication through the composition of

original materials in Standard English.

PC-4.1: Assess the value of multiculturalism and diversity in a global environment.

In this assignment, you will conduct the appropriate research to answer the assigned

questions and create a 3-4-page expository research paper.

Assignment

An effective understanding of economics forms the foundation of every manager’s,

entrepreneur’s, bureaucrats, and leader’s ability to analyze business situations and to

develop an appropriate response. The globalization of business is a fact of life for all

business professionals. One of the most contentious issues in today’s global business

world is the issue of closing local manufacturing facilities, laying off those American

workers, and re-opening the same manufacturing facility in an Asian, or other third world

country.

Look in your own closet at the clothes you have purchased. Pick any 10 items of

clothing and look at the labels in those clothes. W here were they manufactured? How

many of the 10 items were manufactured here in America? If that same exercise had

been done 50 years ago, (approximately the 1970s), all the clothes you owned would

have been manufactured in textile mills in the Southeastern United States (Georgia,

Alabama, Mississippi, North Carolina, South Carolina, etc.). All those Southeastern

textile mills are now closed, and people buy foreign made clothes. If you were able to go

further back in time to 150 years ago (1870s), the clothes you owned would have been

manufactured in textile mills in the Northeast United States (Maine, New Hampshire,

Vermont, Massachusetts, etc.). Yet, by the early to mid-1950s, those Northeastern

textile mills were closed and their workers were out of a job. The mills had all relocated

to the Southeast during the years following the Civil W ar.

Many people say that we should ban the import of these foreign made clothes, so that

more workers in American clothing textile mills could have jobs. Others say that we should continue to import clothing because imported clothing is relatively less expensive and more people can afford to buy more clothes at these low prices. Still others say that

we should put an import tariff (an extra tax that would be paid when we buy these imported clothes), making the price of imported clothing comparable to the price of clothing made in the U.S., and, therefore, encouraging American consumers to buy

American-made clothing.

Unit 2 [BU224 Assignment]

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Questions

Before answering the following questions, review the Assignment Checklist below.

Then, in a separate W ord document, answer the following questions in a 3–4 page

expository research paper:

1. How much does international trade affect you personally? Look at any 10 items

around your home that you have purchased in the last year. W here were they made?

How many were made in America, compared to how many were f oreign made? W hat

things does America export to other countries? W hat things does America import from

other countries? How does what you have learned about Comparative Advantage affect

this trade?

2. Currently there is a lot of talk among politicians about imposing tariffs on foreign

made products imported into the U.S. and retaliatory tariffs imposed by foreign countries

on U.S. made goods. W hat is a tariff? W ho ultimately pays the tariff? Who gets the

proceeds from the tariffs? W hat is the money used f or? Discuss the advantages and

disadvantages to all involved parties (American workers, American consumers, foreign

workers, and foreign consumers) of tariffs on imports to the U.S. and retaliatory tariffs

imposed by foreign countries on U.S. made goods.

3. In considering the foreign trade issue, discuss how the background, education and

cultures of the people in the U.S. and the cultures in each trading country affects their

understanding of the importance of foreign trade. Discuss the importance of you r ability

to understand and accept multiple cultural differences in a global context. W hat

recommendations would you suggest to increase American understanding and

acceptance of foreign cultures?

Assignment Checklist:

● Write your paper in a separate W ord document.

● Unless specified differently by your course instructor, save your assignment to

your computer with the following file naming format: Course number_section

number_last name_first name_unit number

● Your title page should, at a minimum, contain the following information: Your

name, course number, section number, date, and the title of your paper

● Write a 3–4-page paper (in addition to the title and reference pages) following

current APA format with citations to any quoted, or paraphrased sources. Your

written research should also be in Standard English with correct spelling,

punctuation, grammar, and style (double-spaced, in Times New Roman, 12–

point, and in black font). ● Your paper should provide a clearly established and sustained viewpoint and

purpose. ● Your writing should be well ordered, logical and unified, as well as original and

insightful.

Unit 2 [BU224 Assignment]

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● A separate page at the end of your research paper should contain a list of a

minimum of one cited and referenced academically credible reference, in proper

current APA formatting. ● Cite and reference your academically credible sources from the Library and any

other academically oriented online sources. Review the APA formats found in

Writing Resources accessed through the Academic Success Center within the

Academic Tools area of the course.

● Review the rubric to ensure all points have been captured in the paper.