Thursday, September 15, 2016
In the article Collateral damage, Britain has stated that it will leave
the EU and some of Britain's counties are being effected by world trade. One
specifically is Blackburn and they are getting a lot of imports from China, as
seen on the map in the article. Britain is also facing a collapse in manufacturing
employment, as a result of imported goods. I will be focusing on pareto optimal,
export-biased growth and import-biased growth from last week's
discussion.
Is it possible for Britain to become
pareto optimal? In the article, it states that Blackburn has had a decline in
employment of about one-third. It also stats that the gambling rings and pawn
shops are more dominant than restaurants and bars. Blackburn was also for
leaving the EU, among other Chinese heavy traders, in Britain. After looking at
these facts, I believe Britain can become pareto optimal. First, I believe Britain
can try to generate more restaurants and bars in Blackburn’s center to get its employment
back up. In order to accomplish this, they will need to follow through training
employees and they need to make Blackburn a more attractive place to live and
work. In this pareto optimal, Britain will become better off with its own
economy. China will be getting hurt from this because they will not be trading
as much with Britain colonies as it once was.
Is it possible for Britain to have an
export-biased growth? As of now, Britain has been import-bias heavy because of
China. Three colonies have already been become import-bias, two of which are
near the water. Is it possible for Britain to become export-bias, or, will
Britain become even more import-biased with even greater trade from China? I
think Britain will become more export-biased because of their hurt economy, the
immigrants that they keep accumulating, and their lack of trained workers despite
all their “rapid response service.”
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