Posts Tagged ‘exports’

  • Comparative Advantage: A Natural Gas Dilemma

    Aug 17, 13 • 1098 Views • No Comments

    When the price of natural gas plunged in 2008, manufacturers smiled. As Dow Chemical’s CEO recently explained, cheaper natural gas means a $4 billion investment in 120 new manufacturing projects. Using cheap gas, Dow plans to build ethylene, propylene,......  [read more]

  • foreign investment, world, 16467_11.12_000007395743XSmall

    International Trade: The Story of a Subsidy

    May 11, 13 • 641 Views • No Comments

    Oddly, some US farm subsidies go to Brazil. Imagine a safety net when you think of a subsidy. If prices are too low, then growers get money from the federal government. During the 1930s Great Depression, the goal of subsidies was to sustain a farmer’s......  [read more]

  • Everyday economics and Shake Shack

    Purchasing Power

    Feb 22, 13 • 566 Views • 1 Comment

    The Big Mac Index is out again and not much has changed. Norway’s Big Macs are expensive and Chinese Big Macs are cheap. What do Big Mac prices tell us about purchasing power? Starting with an average U.S. price of $4.37, we can determine whether other......  [read more]

  • Is It Better to Outsource or Insource T-shirts?

    Manufacturing Matters in the US

    Dec 10, 12 • 421 Views • No Comments

    Hearing about an apparel firm that “insourced,” I confess I was not as enthusiastic as the report. The firm, American Giant, had just enjoyed a run on their hoodies. As a Made in the USA producer, they have the caché of a San Francisco factory.......  [read more]

  • Invention, Profit and Economic Growth

    The Real Mother of Invention

    Oct 21, 12 • 703 Views • No Comments

    Saying that profit, not necessity is the mother of invention, economic historian John Steele Gordon starts his column in this week’s Barrons. His focus was the 18th century clipper ships that earned people like John Jacob Astor $50,000 for a single......  [read more]