Tinnitus: Causes and Treatments

Tinnitus: Causes and Treatments What is Tinnitus? Tinnitus is one of the most common conditions, 1 of every 5 persons suffers from it, but despite of popular belief it is not a disease. So, what is really tinnitus? Tinnitus is a condition that makes the patient hear a sound like ringing, buzzing, hissing or other sounds, when they aren’t really made by any exterior factors. The noise can have different levels of volume, and it is usually easier to notice in a silent environment when there are no other sounds. Most people are concerned that this condition could cause hearing loss. The people who have this condition have no hearing problems; in rare cases some of the people even develop a hypersensitive sense of hearing. Tinnitus can be persistent or it can come and go, it can affect just one ear or both. Even though it doesn’t cause hearing loss and it is not a serious condition, it still is a matter of concern for some people, sometimes they find it hard to concentrate because of the high-pitched noise they hear, and it even interferes with their sleep. When the condition reaches a level when it affects the patients sleep and concentration the patient must definitely take action. The causes of tinnitus are many, but the condition manifests when the inner cells of the ear are damaged. One of the most commonly experienced causes for tinnitus is the loud noise/sound exposure. Depending on the period of the loud noise exposure, the tinnitus can last from a few hours to many days, weeks, or until treated if a person has been exposed to loud noise for a long amount of time. Another common cause for tinnitus is the hearing loss due to age. Yes, even though tinnitus doesn’t cause hearing loss, hearing loss can cause tinnitus, especially amongst elders. The blockage of the earwax is also a common cause for tinnitus. The earwax is produce naturally by the ear for protection, but sometimes, it forms a blockage that can irritate the eardrum, or cause hearing loss, both of them leading to tinnitus. The good news in this case, is that if the tinnitus is caused by blockage, it can be easily taken away with a visit to the doctor. The first step toward healing the tinnitus is a visit to the doctor. Because it can have many causes, it is important to pay a visit to the doctor, and not just visit the pharmacy. Only the doctor can determine the cause of the condition and offer proper medication for it. The doctor can also provide more information about the condition according to the patient’s questions. Signs and symptoms of tinnitus Tinnitus is not a serious condition but it can cause complication on some patients, mostly because in some cases it affects the sleep or the concentration. Even if it does not cause hearing loss, it is very important to treat it, and the first step towards treatment is knowledge. The first thing everyone should know about tinnitus is how to recognize the signs of this condition. Knowing the signs may help determine earlier if the condition exists and get treatment. One of the earlier signs of tinnitus, and the most easily to notice is a ringing sound the patient hears. Most of the time the ringing can be a high pitched sound, but it can also be a low pitched sound. It can sound as a buzz, a hiss, a ringing or a whooshing. The sound can be persistent or not, it may progress or begin suddenly and it can best be observed in quiet places, when no other sounds interfere. Another sign of tinnitus is sleep deprivation and lack of concentration, all of this being caused by the noise the patient hears, regardless of the fact that the patient is or not fully aware of it at all times. The symptoms of the tinnitus depend on the type of tinnitus the patient has. There are two types of tinnitus: subjective and objective. The subjective tinnitus is very common, 95% of the patients suffering from tinnitus have this type of condition. The symptoms of the subjective tinnitus are often associated with many other ear afflictions and disorders. The most common symptom is the hearing of a buzzing, hassle or ringing but there are other symptoms as well, which may vary from one patient to another, according to their condition and the patient’s reaction to it. Therefore, a patient with subjective tinnitus may also have some of the following symptoms: stress, inducted by the lack of sleep or lack of concentration and in some cases even anxiety. The other type of tinnitus is the objective tinnitus, and this type is only affecting 5% of the persons who suffer from tinnitus. This type of tinnitus is rare and it is often related to a muscular disorder or a vascular disorder. The patient suffering from objective tinnitus can be cured; this type may be observed by the doctor, who can hear with the stethoscope the ringing or buzzing in the patient’s ears. In some cases a sign of objective tinnitus is observed when the ringing sound in the ears is synchronized with the patient’s heartbeat. In both the cases of tinnitus, the signs and symptoms vary from one patient to another, which is why a person should visit the doctor at the first sign of ringing in their ears, in order to determine what condition they have. Learn how to treat tinnitus in a few steps Tinnitus is most of the time nothing serious and it is in fact a condition, not a disease. Tinnitus is, in many cases the condition of another underlying condition and it can be easily cured. There are a few simple steps which every patient has to follow in order to get better: The first and most important step towards healing tinnitus is a visit to the doctor. By taking this step the patient is going to find out the cause of the tinnitus and the underlying condition and get the proper treatment for it. Counseling. Regardless of the cause and treatment for tinnitus, a patient should get counseling from a specialist, to understand tinnitus, talk about it and learn how it affects them as well as how to cope with the condition. Sound. Since tinnitus is most easily observed in silent environments, sound therapy has been proved to be a very efficient way to deal with it. The patient can use a sound generator to be able to sleep, or a distraction from the tinnitus. Relaxation. The patients who suffer from stress because of tinnitus may find it helpful to do some meditation, exercise or even take yoga classes to relax and take their mind of the condition. Earwax removal. There are many cases of tinnitus caused by excessive earwax, and fortunately this can be easily cured with a quick visit to the hospital. Once the earwax is removed the tinnitus will go away, if earwax is the only cause for it. Medication. The tinnitus condition has no known medication cure, but depending on the cause of the condition, some medication can be taken to ease the symptoms. For example, if one of the symptoms is depression, the doctor will recommend antidepressants. Avoid certain substances. If one of the causes for tinnitus is blood flow associated, the patient must avoid substances rich in caffeine and alcohol. Supplements and vitamins. There are some supplements and vitamins that are known to ease the tinnitus symptoms such as magnesium, zinc and B vitamin. The doctor can recommend on or more of them, according to the patients needs. Music. A pleasant and simple way to make the tinnitus less disturbing is music. It can calm and relax the patient, as well as help with sleep and meditation. Avoid loud sound. Whenever possible, loud sound must be avoided, for it is one of the main causes for tinnitus. Even though not all of the patients suffering from tinnitus can be cured, there are a lot of ways to deal with the condition. The treatment is different for every patient, which is why a visit to the doctor is a must in order to get proper care. Learn to prevent tinnitus Tinnitus is not a serious condition, and it can sometimes be cured, by dealing with the underlying health problem that caused it, but it is always easier to prevent than deal with, which is why is important to learn how to prevent tinnitus. There are a few methods and precautions that can be used to prevent the tinnitus. Hearing protection. One of the most common causes for tinnitus is exposure to loud noise, which is why in order to prevent tinnitus one must wear protection when exposed to loud noises. Check your medicine. Some medicines have been known to have tinnitus as a side effect, so a patient must ask their doctor to check the medicine their using. There have been cases when the patient’s tinnitus has been cured when their medication was changed, because the tinnitus was only a side effect of the previous medicine. Stay healthy. Tinnitus is often a condition associated with blood vessel disorders, so a way to prevent tinnitus is to stay healthy with proper exercise, meditation and nutrition. Lower the headphones volume. It is well-know that many people use headphones for music, phone conversation, and radio and so on. Long exposure to loud volume can damage the hearing, thus causing tinnitus. The proper way to use headphone without getting tinnitus and hearing problems is to set the volume as low as hearing what goes around you as well. Avoid places with loud sound or loud music. Exposure to loud sounds and music can cause tinnitus. In most cases the tinnitus induced by loud sound exposure is temporary, but if the ears are exposed to loud sound for large periods of time, then the tinnitus may become permanent. Ease up on caffeine and alcohol. If a person has a blood vessel condition that person is more likely to develop tinnitus when consuming large amounts of caffeine and alcoholic beverages. Hearing aids. Most of the persons who have hearing problems may develop tinnitus, so that case it is important to use hearing aids for tinnitus prevention. Watch your weight. Tinnitus is more likely to develop if the person is obese because obesity is often related to heart problems. Proper alimentation can help maintain a healthy weight, as well as exercise. Tinnitus may not be a serious condition but it is, however unpleasant, and in certain cases it can be complicated, which is why it is better to prevent it. A healthy lifestyle and alimentation, exercise and proper care will definitely help you prevent tinnitus. All you need to know about tinnitus Tinnitus is a very spread condition. Despite to popular belief it is not a disease, but a condition often induced by other health problems. Most of the time the health problems that induce the tinnitus condition are ear related or blood vessel related. Even though in most of the cases the tinnitus is not a serious problem, it is important to stay informed and learn about it. One of the most important things to know about tinnitus is that up to this day there is no cure or medicine for it. However, depending on the case, the tinnitus can go away. If the tinnitus is cause by an earwax blockage, once the blockage is removed, the tinnitus will fade. Also if the cause of the tinnitus is another health issue, when that issue is solved the tinnitus may disappear as well. When the tinnitus cannot be healed, it is imperative to know that its symptoms can be diminished. Depending on the type and cause of the tinnitus, a set of measures may be taken to relieve the patient’s symptoms and help him cope with the condition. If one of the patient’s symptoms is depression, antidepressants may help with the condition, as well as meditation and exercise may help in case of stress. Another important thing to know about tinnitus is that every case is different, so a visit to the doctor should be the first thing on the list. The doctor can set the diagnosis, find the cause of the tinnitus, and cure it in case it is possible, or provide methods of help in case the condition cannot be cured. Preventing is easier than curing, so it is important to know that tinnitus can be easily prevented by following a few steps: avoid loud noise exposure or use hearing protection when exposed to loud noise, avoid long term use of the headphone with a loud volume, exercise, eat healthy, prevent obesity. It is vital to know that tinnitus is not a serious condition and that it can’t affect your life, abilities or personal relationships. Many people have had complications with tinnitus because they worried too much about it, instead on learning how to cope with it, thus leading to depression, stress and lack of sleep. Tinnitus can be easily prevented, however if you do get it remember that even if it can be cured all you have to do is be calm about it and remember it is not a serious issue and it can be easy to deal with. Country Comparison of Prices: Rice and Cocoa Country Comparison of Prices: Rice and Cocoa Surname: KAREKLA Name: MARIA Subject 1: As noted by Thompson (2001) absolute advantage occurs when a good is produced with the lower labor input per unit and comparative advantage â€Å"when relatively less of other goods must be sacrificed to produce a unit of the specialized good†(1). So, in this case, the amount of labor requirements per unit of output are: RICE COCOA NORWAY 1 1/3 ARGENTINA 3/2 3/2 So, Norway has an absolute advantage in producing both products, since its labor requirements are lower both in rice, 1 Furthermore, in the following table Opportunity cost table RICE COCOA NORWAY =3 =1/3 ARGENTINA =1 =1 it is shown that for Norway the opportunity cost for producing 1 ton of rice is =3 tons of cocoa and the opportunity cost for producing 1 ton of cocoa is =1/3 tons of rice. In Argentina, the opportunity cost for producing 1 ton of rice is =1 ton of cocoa and the opportunity cost of producing 1 ton of cocoa is =1 ton of rice. So, Norway has a comparative advantage in producing cocoa, since it has a lower opportunity cost in producing it (1/3 b) In autarky the Production Possibility Frontier (PPF) is the same with the Consumption Possibility Frontier(2). So, henceforth, LN and LA is the labor endowment in Norway and Argentina respectively, aNLR, aNLC and aALR, aALC is the amount of labor per unit of rice and cocoa in Norway and Argentina respectively, R and C is the quantity of rice and cocoa respectively(3). In Norway the PPF is: LN=aNLR ·R+aNLC ·C 130=1 ·R+1/3 ·C It takes 1 worker to produce a unit of rice and 1/3 to produce a unit of cocoa. As noted by Thompson (2001) employment in rice production plus employment in cocoa production sums the labor force of Norway(3). If 0 cocoa is produced: 130=(1 ·R)+(1/3 ·0) R=130/1=130 If 0 rice is produced: 130=(1 ·0)+(1/3 ·C) C==390 So, the autarky PPF,CPF diagram of Norway is as follows: As noted by Thompson (2001) Norway produces at the two endpoints of the PPF, (130,0) or (0,390) or at any other point between them(3). In the same way, in Argentina the PPF is: LA=aALR ·R+ aALC ·C 390=(3/2 ·R)+(3/2 ·C) If 0 cocoa is produced: 390=(3/2 ·R)+(3/2 ·0) R==260 If 0 rice is produced: 390=(3/2 ·0)+(3/2 ·C) C==260 So, the autarky PPF,CPF diagram of Argentina is as follows: Furthermore, the relative price of rice in Norway is 3 and of cocoa is 1/3, the opportunity cost of one relative to the other. The relative price of rice and cocoa in Argentina is 1 for each one of them. So, in autarky cocoa is relatively cheaper in Norway, since 1/31. Consequently, as noted by Agiomirgianakis, and Vlassis (2005) the international relative price of rice will be between 1 and 3. If it’s above 3 both countries produce rice. If it’s below 1, both countries produce cocoa. Since the international relative price of rice is 3/2, between 3 and 1, Argentina specializes in rice, producing 390.000.0001=390.000.000 tons of rice, and Norway in cocoa, producing 130.000.0003=390.000.000 tons of cocoa(4). Continuing, in free trade and since the world equilibrium price of rice is Pr/Pc=3/2. This is the Norway’s new Consumption Possibility Frontier(5): PrΆ¡qr+PcΆ¡qc=PcΆ¡390 (PrΆ¡qr+PcΆ¡qc)/Pc=390 (PrΆ¡qr/Pc)+(PcΆ¡qc/Pc)=390 [(Pr /Pc)Ά¡qr]+qc=390 qc=390-[(Pr /Pc)Ά¡qr] and since Pr/Pc=3/2 (the world equilibrium relative price of rice) qc=390-(3/2Ά¡qr) The slope of the free trade CPF is -3/2 and the diagram as follows: This is the Argentina’s new Consumption Possibility Frontier(5): PrΆ¡qr+PcΆ¡qc=PrΆ¡260 (PrΆ¡qr+PcΆ¡qc)/Pr=260 (PrΆ¡qr/Pr)+(PcΆ¡qc/Pr)=260 [(Pc /Pr)Ά¡qc]+qr=260 qr=260-[(Pc /Pr)Ά¡qc] and since Pr/Pc=3/2 and Pc/Pr=2/3 qr=260-(2/3Ά¡qc) The slope of the free trade CPF is -2/3 and the diagram as follows: As noted by Karagiannis, Katranidis, Palivos and Stoforos (2014) under free trade both countries can â€Å"consume combinations of the two goods that are not produced within the country†(5). c) As noted Karagiannis, Katranidis, Palivos and Stoforos (2014) the wage rates in Argentina can be calculated by WA=Pr/aALR and the wage rates in Norway by WN=Pc/aNLC. So, the wage in Argentina relative to wage in Norway can be calculated as WA/WN=(Pr/Pc)x(aNLC/aALR)=3/2x=x==1/2.(6) So, the wages in Argentina are the  ½ (half) of the wages of Norway and Argentinian workers would want to immigrate to Norway. Furthermore, as noted by Agiomirgianakis, and Vlassis (2005) one of the factors that affect the wage rates of the countries is the terms of trade, which is actually the world equilibrium price of the traded goods(7). d) As explained by Thompson (2001)(8) when a country opens to free trade and due to comparative advantage specializes in one good, importing another, the domestic firms that produced this other product in autarky but at higher prices than the world price, would have reasons to object to free international trade, since they would go out of business. Their stockholders and investors would strongly oppose to such an opening to free trade since they would lose their money. Also, a lot of specialized workers would also object to free international trade since they would have to retrain to find a job in the firms of the good their country specializes from now on. However, even though the cost of retraining workers and reforming the firms to the new specialised market will be considerable, it will also be temporary and the economy, after a small transition period, will readjust to the new conditions and in long term the gains from free trade will prevail. The producers will see their market and income increase and consumers will enjoy more cheaper goods. SUBJECT 2(9): a) In autarky the equilibrium price and quantity is where the supply and demand curve intersect, where Qs=Qd. So, Qs=Qd 2P=600-P 2P+P=600 3P=600 P=600/3=200 â‚ ¬ is the autarky equilibrium price. Having found the price, we can find the equilibrium quantity: Qd=Qs=2P=2200=400 b) On free trade the world price is Pw=125, the quantity supplied (QSw) and demanded (QDw) in the country is: QDw=600-P=600-125=475 QSw=2P=2125=250 The country’s quantity demanded of steel is 475, which is less than the quantity supplied (250), and consequently there will be QDw-QSw=475-250=225 imports. c) Tariff=T and price under the tariff is the world price plus the tariff: P2=Pw+T So, the new quantities supplied(Qs2) and demanded(Qd2) are: Qs2=2P2 Qs2=2x(Pw+T) Qs2=2x(125+T) Qs2=250+2T Qd2=600-P2 Qd2=600-(Pw+T) Qd2=600-(125+T) Qd2=600-125-T Qd2=475-T The amount that the government wants to raise, 3,750 Euros, equals the tariff times the imports(10), which are the quantity demanded(Qd2) minus the quantity supplied(Qs2), 3,750=T x (Qd2-Qs2) So, T=3,750/(Qd2-Qs2) T=3,750/[(475-T)-(250+2T)] T=3,750/(225-3T) T x (225-3T)=3,750 -3T2+225T-3,750=0 [With Δ=2252-(4 ·-3 ·-3,750)=50,625-45,000=5,625 and since it is positive:] T1=(-225-) /(2x-3)= -300/-6=50 T2=(-225+) /(2x-3)= -150/-6=25 So, the government can raise 3,750 â‚ ¬ by imposing a tariff on imports of either T1=50 or T2=25. Which one the government should choose depends on the consumers and producers gains and losses and the net effect of each tariff, relative to which part its politicians wants to protect the most. So, for tariff T1: The new price is PT1=PW+T1=125+50=175 and the quantity supplied and demanded is: QST1=2PT1=2175=350, QDT1=600-PT1=600-175=425. So, the change in consumer surplus is the difference between consumer surplus with the tariff minus the consumer surplus on free trade and can be seen on the diagram as -(a+b+c+d) areas(9). So,{[(600-175)x425]/2}-{[(600-125)x475]/2}=90,312.50-112,812.50= -22,500 â‚ ¬ the money consumers lose due to the tariff. The change in producers surplus is the difference between producers surplus with the tariff minus producers surplus on free trade and can be seen on the diagram as the scheme a(9). [(PT1-PW) ·QST1]–([(PT1-PW) ·(QST1-QSW)]/2}=[(175-125)x350]-{[(175-125)x(350-250)]/2}=17,500-2,500=15,000 â‚ ¬ the producers gain. The net effect of tariff T1=50 can be seen on the scheme by the two triangles b and d and is calculated as –(b+d), being actually the deadweight loss for society(9): -(b+d)= -{{[(QST1-QsW)xT1]/2}+{[(QDW-QDT1)xT1]/2}}= -{{[(350-250)x50]/2}+{[(475-425)x50]/2}}=-(2,500+1,250)= -3,750 â‚ ¬ the net effect. So, for tariff T2: The new price is PT2=PW+T2=125+25=150 and the quantity supplied and demanded is: QST2=2PT2=2150=300, QDT2=600-PT2=600-150=450. So, the change in consumer surplus is, as can be seen on the diagram, -(a+b+c+d) (9). So,{[(600-150)x450]/2}-{[(600-125)x475]/2}=101,250-112,812.50= -11,562.50 â‚ ¬ the money consumers lose due to the tariff. The change in producers surplus is the difference between producers surplus with the tariff minus producers surplus on free trade and can be seen on the diagram as the scheme a(9). [(PT2-PW) ·QST2]–([(PT2-PW) ·(QST2-QSW)]/2}=[(150-125)x300]-{[(150-125)x(300-250)]/2}=7,500-625 =6,875 â‚ ¬ the producers gain. The net effect of tariff T2=2 is as before –(b+d) (9): -(b+d)= -{{[(QST2-QSW)xT2]/2}+{[(QDW-QDT2)xT2]/2}}= -{{[(300-250)x25]/2}+{[(475-450)x25]/2}}=-(625+312.50)= -937.50 â‚ ¬ the net effect. Consequently, if the government wants to protect the consumers more than the producers, it should impose tariff T2=25 since consumers will lose less and the net effect is smaller, but if it prefers to protect producers it should impose tariff T1=50 since they gain more with it (15,000>6,875), even though the net effect is bigger. d) As noted by Thompson (2001) â€Å"a quota is a quantitative restriction on the level of imports†(10). So the quota is the difference between the quantity demanded and the quantity supplied under new price. Quota =QDq-QSq and the new price under the quota is the world price plus q: Pq=Pw+q So the new quantities supplied and demanded are: QSq=2Pq =2 ·(Pw+q)=2 ·(125+q) QSq=250+2q QDq=600-Pq=600-(Pw+q) QDq=600-(125+q) QDq=475-q The amount that the government wants to raise, 3,750 â‚ ¬, equals q (the price raise due to the quota) times the imports [the quantity demanded (QDq) minus the quantity supplied (QSq)], 3,750=q ·(QDq-QSq) So q=3,750/(QDq-QSq) q=3,750/[(475-q)-(250+2q)] q=3,750/(225-3q) q ·(225-3q)=3,750 -3q2+225q-3,750=0 [With Δ=2252-(4 ·-3 ·-3,750)=50,625-45,000=5,625 and since it is positive:] q1=(-225-) /(2x-3)= -300/-6=50 q2=(-225+) /(2x-3)= -150/-6=25 With q1=50, Pq1=125+50=175, and QSq1=2Pq1=2175=350, QDq1=600-Pq1=600-175=425 and so the Quota=QDq1-QSq1=425-350=75 With q2=25, Pq2=125+25=150, and QSq2=2Pq2=2150=300, QDq2=600-Pq2=600-150=450 and so the Quota=QDq2-QSq2=450-300=150 As in the previous answer (c), the government can choose between a quota of 75 and 150 imports, with the same result for its income. If the government wants to protect its consumers, it will impose a quota of 150 imports since it will set a smaller price than with a quota of 75 imports (150425. But if the government wants to protect producers it will impose a quota of 75 imports, since with it the producers sell more (350>300) and gain more (350175=61250 > 45000=300150)]. Subject 3: a) In autarky the equilibrium price (P) and quantity (Q) can be found setting quantity supplied and demanded equal: QD=QS 180-30P=20+10P 180-20=30P+10P 160=40P 160/40=P Since P=4, quantity is Q=QD=QS=20+10P=20+(104)=60 On free trade price=Pw=2 and the quantities supplied(QSw) and demanded(QDw) are: QDw=180-30Pw=180-(302)=120 QSw=20+10Pw=20+(102)=40 The export subsidy would put the price Ps=PW+2.5=2+2.5=4.5 â‚ ¬ and the quantities supplied and demanded: QDs=180-30Ps=180-(304.5)=45 QSs=20+10Ps=20+(104.5)=65 On free trade 40 units are supplied but 120 units are demanded, so (120-40=) 80 units are imported. The price is the world price, 2 â‚ ¬. With the export subsidy 65 units are supplied but only 45 are demanded in the country, so (65-45=) 20 units are exported. The new price is 4.5 â‚ ¬. Consumers consume less units that are more expensive. The consumers lose from the export subsidy and their income decrease can be calculated by ΔCS= -(a+b+e+f+g) areas of the diagram(11): a+e=(PS-PW)xQDS=(4.5-2)x45=112.5 b+f+g=[(PS-PW)x(QDw-QDs)]/2=[(4.5-2)x(120-45)]/2=187/2=93.75 So, -(a+b+e+f+g)= -(112.5+93.75)= -206.25 â‚ ¬ Producers gain from the export subsidy. On free trade they sell 40 units for only 2 â‚ ¬, but with the export subsidy they sell 65 units, (65-40=) 25 units more, for 4.5 â‚ ¬. The producers gain (income increase) can be calculated by ΔPS=a+b+c areas on the diagram(11): [(PS-PW)xQSs]–{[(QSs-QSW)x(PS-PW)]/2}=[(4.5-2)x65]-{[(65-40)x(4.5-2)]/2}=162.5-31.25=131.25 â‚ ¬ The government loses from the export subsidy. Its loss is the budget effect and can be calculated by –(b+c+d+f) areas of the diagram(11): –(b+c+d+f)= -[(PS-PW)x(QSs-QDs)]= -[(4.5-2)x(65-45)]= -50 â‚ ¬. The net effect, the deadweight loss of society, can be calculated by adding consumers lose+producers gain+budget effect= -206.25+131.25-50= -125 â‚ ¬ b) With the production subsidy the producers gain 2 (the world price) +2.5 (the subsidy)=4.5 â‚ ¬ per unit of output, which is the new price (PS) for them only(12). Consumers buy still at 2 â‚ ¬. The new quantity produced with the new price is Qs=20+10P=20+(104.5)=20+45=65. The quantity demanded didn’t change(120), so if there in no imports prohibition, consumers buy 65 from the country’s producers and (120-65=)55 are imported, all for 2â‚ ¬. So, consumers have no gains or loss from the production subsidy(12). The government loses the amount of the subsidy: 65unitsX2.5â‚ ¬= -162.5 â‚ ¬, the –(a+b+c+d) areas of the diagram(12). The Net effect can be calculated by the –(c+d) areas of the diagram(12): -(c+d)= -{[(QS-QSw)x(PS-PW)]/2}= -{[(65-40)x2.5]/2}=-(62.5/2)= -31.25 â‚ ¬ Producers gain from the production subsidy and their gains can be calculated by the a+b areas of the diagram(12): a+b= (a+b+c+d)-(c+d)=162.5-31.25=131.25 â‚ ¬ Subject 4: Several politicians in developed countries are in favor of free trade of goods between countries but strongly against immigration and free exchange of workers among countries. The question is whether one can be in favor of the first and against the second, especially since they are actually against free trade of the production factor of labor. According to the supporters of the above, immigration is created due to the differences of wages among countries and a certain equalization of wages would eliminate that reason, ignoring actually that a large part of immigration is due to asylum seekers. Continuing, according to them, free trade of goods between countries can provide the less developed ones with a really large market, the international one, to which they could export the goods at which they have a comparative advantage due to cheap labor, creating the conditions for the price of those goods to rise in a long term base due to the increasing demand for the exporting good. Increased demand for the good leads to an increased demand for labor and consequently, a raise on wages. In that way, free trade would eliminate the abovementioned reason for immigration. Based on that, for example Mundell (1957) sees free trade and immigration as substitutes, arguing that restrictions on free trade create immigration and restrictions of labor factors promotes free trade (13). According to the supporters of the above idea, immigration also reduces the labor endowment of the home country of the immigrants, and consequently the number of consumers. The market of the home country is in other words shrinking. In the same time, immigration increases the host country’s costs for health, security and other public services. Finally, some support that a large amount of foreign workers in a country might create serious unemployment problems to its citizens(14). However, the above arguments are not generally accepted. Markusen (1983) has proved that free trade and immigration are actually complements in cases where international trade is created for example due to differences in technology, preferences or lack of perfect competition(14). There are also others who argue that immigrants in a free trade environment create a whole new market for trade with goods for which there was no demand before immigration(15). Immigrants also pay taxes in the host country(14). In conclusion, the idea that a country should promote free international trade and prohibit immigration isn’t always the best solution, since it can be beneficial only under certain circumstances that are not always attainable. BIBLIOGRAPHY: (1) THOMPSON, H. (2001) â€Å"International Economics: Global Markets and International Competition†. Singapore: World Scientific, p.29,48. (2) KARAGIANNIS, G., KATRANIDIS, S., PALIVOS, T., STOFOROS, C. (2014) International Economics. 2nd Tutorial Meeting, MBA50: Economics for Managers, Hellenic Open University, 6th December 2014,p.10. (3) THOMPSON, H. (2001) â€Å"International Economics: Global Markets and International Competition†. Singapore: World Scientific,p.29,40-41. (4) AGIOMIRGIANAKIS, G.M., VLASSIS, M. (2005) Economics for Managers: Volume 1 International Economic Environment. Patras: Hellenic Open University, p.41. (5) KARAGIANNIS, G., KATRANIDIS, S., PALIVOS, T., STOFOROS, C. (2014) International Economics. 2nd Tutorial Meeting, MBA50: Economics for Managers, Hellenic Open University, 6th December 2014,p.15. (6) KARAGIANNIS, G., KATRANIDIS, S., PALIVOS, T., STOFOROS, C. (2014) International Economics. 2nd Tutorial Meeting, MBA50: Economics for Managers, Hellenic Open University, 6th December 2014,p.18-19. (7) AGIOMIRGIANAKIS, G.M., VLASSIS, M. (2005) Economics for Managers: Volume 1 International Economic Environment. Patras: Hellenic Open University, p.45. (8) THOMPSON, H. (2001) â€Å"International Economics: Global Markets and International Competition†. Singapore: World Scientific,p.89-91. (9) THOMPSON, H. (2001) â€Å"International Economics: Global Markets and International Competition†. Singapore: World Scientific,p.117-8. (10) THOMPSON, H. (2001) â€Å"International Economics: Global Markets and International Competition†. Singapore: World Scientific,p.121-2. (11) KARAGIANNIS, G., KATRANIDIS, S., PALIVOS, T., STOFOROS, C. (2014) International Economics. 2nd Tutorial Meeting, MBA50: Economics for Managers, Hellenic Open University, 6th December 2014,p.39. (12) SURANOVIC, S.M., (2003) International Trade Theory and Policy. [Online], Chapter 95-1B, Available from: http://internationalecon.com/Trade/Tch95/T95-1B.php[Accessed: 9th January 2014]. (13) AGIOMIRGIANAKIS, G.M., VLASSIS, M. (2005) Economics for Managers: Volume 1 International Economic Environment. Patras: Hellenic Open University, p.138-150. (14) SCHIFF, M., Migration, Investment and Trade: Substitutes or Complements?.[Online] Agent Franà §aise de Dà ©veloppement. Availlable from: http://www.afd.fr/webdav/shared/PORTAILS/PUBLICATIONS/EUDN/EUDN2006/Schiff.pdf[Accessed: 14th January 2015]. (15) MARJIT, S., BELADI, H. Complementarily between Trade and Factor Movement: Revisiting Mundell-Markusen Propositions. KeiO Associated Repository of Academic Resources. Available from: http://koara.lib.keio.ac.jp/xoonips/modules/xoonips/download.php/AA00260492-20020001-0057.pdf?file_id=28397[Accessed: 14th January 2015].