Free Essay SamplesAbout UsContact Us Order Now

trade policy supply and demand

0 / 5. 0

Words: 1100

Pages: 4

31

Pennsylvania trade policy and demand
Name:
Course:
Date:
Pennsylvania trade policy and demand
The second district of Pennsylvania inhabits most African Americans who are in Philadelphia. The sections that encompass the region include Northwest, North and West Philadelphia. The district took part of Cheltenham Township before the 113th congress. There are many Democrats in the district, and is currently being represented by Fattah Chaka, who has represented the region since 1995. Many debates that have emerged from the district are often centered on the various schools of though.
The majority of residents can be said to favor the Keynesian economics, which has the regulatory oversight that is strong in nature. This is in opposition to the commonly used principle of supply-side economics, which makes use of minimal regulations, low taxes, coupled with free enterprises. The debates have majorly been on the role the federal government should do to ensure swift supply and demand in the district and the US as a whole. The debate also focuses on intergenerational equity together with the equality of income of the people. The quality of life of the future generations fully depends on the decisions the district endeavors to make today.
The Stopler-Samuelson theorem is often used as a normal theorem in the theory of Hecksher-Ohlin trade and has a full disclosure on the relationships between the outcomes and relative prices of commodities. The rewards can be real returns and real wages.

Wait! trade policy supply and demand paper is just an example!

The theorem specifically denotes that under various assumptions in the economy, an increase in price will relatively lead to the output of the factors that were used during production and a relative fall on other factors that are in play.
The theorem is particularly in play in the district as it indicates the effect of various changes in the prices of commodities due to the various tariffs that are available. The economic conditions in the district provide different sectors that produce goods that are in relative competition to the imports in the region. The sector is also labor intensive, since it has a high ration of labor to the available capital when compared to the export sector. The assumptions in the economy relate to the relative tariffs changes which ultimately has affected prices and the economy at large.
The changes in tariffs in the district have made it possible for the local sectors to expand, and is at the expense of the export sector. The expansion capabilities of the sector which is labor intensive has made the aggregate demand to expand and this is the labor that relates to capital offerings from the region. The condition has exerted upward pressure on the wages of because of minimal changes to the prices of exports, leading to a fall in various aspects of the economy which include capital return. The wage has to go higher than the prices set for imports to ensure an equilibrium stand. The labor intensive nature of the imported goods and this has made capital earners from the district to lose, while the earners of wages gain irrespective of their consumptions.
Another vital assumption is that the sectors have mobile factors. When making use of this assumption, there are specific-factors models which come at play, and these factors provide a different approach to the Heckscher-Ohlin model. The region has seen a heavy protection, which has increased the returns of different factors, while lowering the factors that are in operation in the export sector. The effect of the assumption is that it creates ambiguity, while the specific factor model is bringing about short-run equilibrium. It is vital to note that the factors will lose their difference over a period, making them intersect orally mobile, bringing back the Stopper-Samuelson thoughts of operation.
The theorem is also used to make various definitions on the political stand of the region, which is majorly populated by the democrats. Their exposure to trade capabilities through the use of land, capital and labor indicate that the various sectors that are in competition make the import sector to expand in the long run.
The SF model as commonly known provides different features and assumptions that a factor is deemed specific in nature in the industries in the market. A specific kind of factor is that which is not movable in a particular industry even when there are changes in the conditions at the market. The reason the factors in the district can be related to being specific is because of the training capabilities which occur in the labor sector, while others are designed to operate in such a manner, and this fully describes the capital sector. Such situations have made it impossible for the leadership in the region to move the available factors from one industry to another.
An assumption to this case is that the market in Pennsylvania is competitive, and manufactures two different types of goods for the economy, which are labor and capital. The capital factor from the region is attached to the import sector, and is always immobile in nature. The labor factor on the other hand is mobile and free in movement, leading to various changes that are seen in the market after operations. There are three types of factors that aid production in the district and include specific capital in the first industry, specific capital in the second industry and labor.
The assumptions are vital as they put the SF model in operation between the Heckscher-Ohlin models. When making use of an immobile factor model, the factors of manufacturing that are attached to a particular industry are always immovable. In the Heckscher-Ohlin model the available factors are often free, and never specific in nature. Because of the mobile nature of different factors when considering changes in the economy, there is always a short run effect. The demand assumed by the models is observed in the district and this has made most firms from the region make use of outputs that can allow them to increase their levels of profit while making use of their wages and prices as stipulated.
In conclusion, the Pennsylvania House of Representatives and Senators attest to the fact that the supply and demand of their region is capable of improving if they follow the models that ensure high profits at minimum production costs. They have made capital to be constant and this has regulated the operations that are seen among various imports and exports. They are considering to have regulated prices, and this will make changes to their output in the long run. Pennsylvania’s 2nd Congressional district clearly indicates the various distinctions that are available in the Stolper-Samuelson theorem and Ricardo-Viner theorem, and have actively succeeded in their many operations through reforms to their set policies. The parties have power, and the Democrats have been in the forefront in rallying for those reforms to ensure equity and sustainable development in the long run. The issues of supply and demand have the comparative strength and this has made them cut on various spending capabilities to stay at equilibrium.

Bibliography
“Investigating Economic Indicators”. U.S. Census Bureau. Accessed December 16, 2015 HYPERLINK “http://www.census.gov/” http://www.census.gov/
“The library of Congress”. Roll Call Votes  Accessed December 16, 2015 HYPERLINK “http://thomas.loc.gov/home/rollcallvotes.html” http://thomas.loc.gov/home/rollcallvotes.html
“The United States House of Representatives”. Accessed December 16, 2015 HYPERLINK “http://www.house.gov/” http://www.house.gov/
“Vote Smart Just the Facts”. Project Vote Smart – Accessed December 16, 2015 http://www.vote-smart.org
Alt, James E., and Michael Gilligan. 1994. The political economy of trading states: Factor specificity, collective action problems and domestic political institutions. Journal of Political Philosophy 2 (2): 165-92.
Rogowski, Ronald. 1987. Political cleavages and changing exposure to trade. The American Political Science Review 81 (4): 1121-37.
Scheve, Kenneth F., and Matthew J. Slaughter. 2001. What determines individual trade-policy preferences? Journal of International Economics 54 (2): 267-92.
United States Senate”. Accessed December 16, 2015. HYPERLINK “http://www.senate.gov/” http://www.senate.gov/

Get quality help now

Rima Hartley

5.0 (445 reviews)

Recent reviews about this Writer

I am grateful to studyzoomer.com for connecting me with a talented essay writer. They produced an exceptional essay that showcased their expertise and dedication.

View profile

Related Essays

Family member causing shame.

Pages: 1

(275 words)

Maths Term Paper

Pages: 1

(275 words)

Business Investments

Pages: 1

(275 words)

step1

Pages: 1

(550 words)

Military Rhetorical Essay

Pages: 1

(275 words)

Rhetorical Analysis

Pages: 1

(275 words)

Policy Proposal

Pages: 1

(275 words)

The Work of the Holy Spirit

Pages: 1

(275 words)