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Foreign Built American Cars vs American Built Foreign Cars

Abbreviated Question: 
Foreign Built American Cars vs American Built Foreign Cars
Answer: 

This question addresses an important debate in the current economic climate in which global production network and offshoring are prevalent. Economic research on this topic from both theoretical and empirical aspects is vast and is still ongoing. We can approach the question from three different directions.

Any real world examples of comparative advantage?

Abbreviated Question: 
Any real world examples of comparative advantage?
Answer: 

Prices will drive the system. For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows.  China has a comparative advantage in electronics because it has an abundance of labor. With the removal of the milk quota and the opening of trade between China and Ireland, Irish dairy farmers will experience higher milk prices and will expand diary production. Milk products from Ireland will be sold to thousands of retail outlets in China.

Are there any positive effects of applying tariffs?

Abbreviated Question: 
Are there any positive effects of applying tariffs?
Answer: 

Tariffs, like many government policies, have both costs and benefits.  As your questions points out, we have heard much about the costs of tariffs in the ongoing trade disputes.  But there are also benefits that accrue.  For example, the U.S. steel and aluminum industries will benefit from the tariffs imposed by the Trump administration, as some U.S. companies shift some of their steel and aluminum needs to U.S. suppliers due to the tariffs and the impact the tariffs have on the relative costs of U.S.