Assignment (Economics) Example | Topics and Well Written Essays - 250 words - 7

(Economics) - Assignment Example The ban of a product hurts the consumer markets especially if the good was used by a lot of people. When vendors smuggle the goods and bring them to the marketplace illegally society benefits because these goods are providing a utility that is needed for the consumers. I believe that US citizens should boycott companies that abuse its workers in less developed countries. The only way for these companies to stop these unethical practices is for the customers to take proactive action to boycott these types of establishments. A full boycott of an item that is offered at much lower prices might hurt consumers that cannot afford to pay higher prices. Due to the different in opinions of customers it would be hard to implement a full boycott. Country A should produce toys, while country B should produce pineapples. Country A must trade toys for pineapples and country B must trade pineapples for toys. In general country A produces less toys or pineapples than country B. Their competitive advantage is in toys because country B can produce more than twice the amount of pineapples than country A. Since country B can produce 900 pineapples per day this country should concentrate on producing pineapples. The competitive advantage of country B in pineapples is 2.25 to