Homework economics

Let's talk about the benefits and costs of the biggest ship in the world!


benefits:

There will be less pollution per unit carried (decreasing social costs), because the ship is able to carry a lot containers. Because of the massive amount of units this ship is able to carry the Avarage Total Costs will decrease (assuming the ship is fully loaded). Due to this the price for the consumer will fall. Also, it is more labour-efficient because the crew only consists of 13 crew-members.
Fuel costs per unit carried are reduced because of the capacity of the ship.

costs:

Building the biggest ship in the world costs alot and requires a lot of resources. Also, the size of the ship brings a lot of problems. For trade from China to Europe the ship would have to use the Suez-Canal. However, due to the size of the ship the ship is not able to pass through the Suez-Canal and will have to sail all around Afrika. Also for the trade with the eastern part of the United States the ships normally go through the Panama-Canal but the ship wouldn't fit through that canal aswell.
Therefore the ship will have to seek for other places on the west of the United States to unload. The goods will still have to be in the eastern part and therefore way more railway is required.
More problems in the size of the ship is that it would not be able to mount at a lot of seaports because the ship simply is way too big and that the ship will be very slow because of its size. The transport time will be greater than with normal ships.

UK trade with China



Benefits (for UK):
It may create jobs for the transport sector. Also, because of the lower import prices the inflation will fall. Profits for company's may increase because of the lower import prices.
Manufacturing will move to China, which gives the opportunity to the UK to specialize in high value-added products. The intellectual property rights will make a lot of money for the UK if the UK starts specializing in high value-added goods. (And assuming company's in China will respect the IPR's)

Costs (for UK):
Because of the manufacturing moving to China the unemployment rates will rise causing a negative multiplier effect.
Also, there will be - ceteris paribus - a lower GBP because of increasing trade deficit. Lower currency rates increase the costs for companies who need to import factors of production. (Land, labour, capital and entrepreneurship) Lowering the profits of UK company's causing - again - a negative multiplier effect.

Because of the huge amount of import from China the UK might become too dependent.(the other way around the UK is only 2% of the exports China.)

The original:

Let's talk about the benefits and the cost of use the biggest ship to transport!
benefits:
I think there will be less pollution for unit carried, also massive the capacity, because they can transport a lot containers. Also it will reduce the price to consumer, because the cost of transport will decrease by the big ship. low labour cost as well, because there are only 13 crews which this case study mentioned. Also low fuel cost per container carried.
costs:
Build a biggest ship must cost a lot, also if a ship is very big, the speed will be reduce because when they want to pass some canal, for example Suez canal, they will use a lot of time. Also ore railway line needed. If they want to save money, the capacity of this ship must be full.
Then, I would like talk about if UK trade with China.
If UK trade with China, they can spend less money to import, also when they transport some products from China to UK, they can creates jobs for transport. Also it leading to lower cost push inflation, because the products from China is cheap which reduce the price of goods. However, trade with China might reduce the manufacture job in UK.