23 May WHAT IF YOU BORROWED MONEY TODAY BUT THE DOLLAR DECREASED IN VALUE BY THE TIME YOU WERE READY TO REPAY THE LOAN?
Why do countries trade? Research the impact globalization and trade has had on the United States. Has international trade had any negative impacts such as on the environment or domestic employment? Explain. Your answer must include a discussion of:
• Comparative Advantage
• Absolute Advantage
• Specialization and Trade
• The Heckscher-Ohlin model
In the book Total Money Makeover, Dave Ramsey states that the best thing one can do to gain financial freedom is to get out of debt. He advocates we pay off our cars, house, and student loans, and never borrow again. Others believe we should live in debt. Economist Roger Miller writes, “Living in debt is reasonable for most people. Most people are better off by smoothing out their consumption purchases over a lifetime.”(Miller, 2007) Which author do you agree with and why? What if you borrowed money today but the dollar decreased in value by the time you were ready to repay the loan? Would your answer be the same?
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