Would you consider making a donation to a charitable organization benefiting workers in that country if you were willing to give up some of your surplus if it went directly to the workers in that country (this is a way for you to give some of your surplus to the workers)? If so, why or why not?
We explained the benefits of trade in this chapter on international trade by using the concepts of producer and consumer surplus. We all know that trade barriers like quotas and tariffs raise prices and reduce consumer surplus, but we also talked about how trade barriers can save or create jobs for American workers. Please write the following in no more than two pages:
Identify an imported product that you recently purchased and estimate the amount of consumer surplus you received as a result of your purchase.
Indicate how much, if any, of your consumer surplus you would be willing to give up if it meant another job for an American worker could be saved.
Determine whether the amount of consumer surplus (in dollars) you would be willing to give up if you knew that the job saved for an American worker came at the expense of a job for someone in a third-world country.
Determine whether the amount of surplus you would give up if you knew the surplus you gave up went directly to increasing the wage of a worker in a third-world country.
Indicate whether you would change the purchase and the associated consumer surplus in any way to redistribute the gains from international trade that you personally received. Would you consider making a donation to a charitable organization benefiting workers in that country if you were willing to give up some of your surplus if it went directly to the workers in that country (this is a way for you to give some of your surplus to the workers)? If so, why or why not?