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- What are the conditions under which a country may use the unsafe products argument to block imports?4. Effects of a regional trading arrangement Consider a hypothetical world consisting of only three countries: Liechtenstein, Canada, and France. Each country produces grain. Liechtenstein is a small economy compared to Canada and France and thus cannot influence foreign prices. On the following graph, the supply and demand schedules of Liechtenstein are shown as Such and DLch- Foreign supply schedules of grain are perfectly elastic: Canada is a more efficient supplier of grain than France because its supply price is $1.00 per bushel (Scan), whereas France's supply price is $2.00 per bushel (Sp). ? 10.00 SL 9.00 8.00 7.00 6.00 5.00 4.00 3.00 A 2.00 Scan 1.00 6 12 18 24 30 48 54 60 Calculate the quantity of bushels Liechtenstein imports when the three nations engage in free trade. Enter this value in the first row of the following table. Also indicate which country Liechtenstein imports from. Imports Scenario (Thousands of bushels) Imports from... Free trade With tariff With customs…1. Suppose the automobile industry in Dreamland is required to pay 3 percent of surcharge on every car imported to the country. This is an example of a a.export tax b.export restriction c.tariff d.trade liberalization
- www.N-AUDIOPRO.COM PS7 - Word (Unlicensed Product) A Philip Ekoma Jr References Mailings Review View Help O Find Aa A | 13|三国一 ,少,…, AaBbCcD AaBbCcD AaBbC AaBbCcC AaB Replace Dictate 1.A- I Normal T No Spac. Heading 1 Heading 2 Title A Select , 叫一川即: Paragraph Styles Editing Voice 美 一 5. b. Explain how the "wealth effect" causes the Aggregate Demand curve to be downward sloping. C. Explain how "sticky nominal wages" cause the Short-Run Aggregate Supply curve to be upward sloping. d. The table below lists a number of economic events. For each event, indicate whether it will shift. the AD curve to the right (by entering "R"), to the left (by entering "L"), or not at all (by leaving it blank), whether it will shift the Short-Run AS curve to the right (by entering “R), to the left (by entering "L"), or not at all (by leaving it blank) 班 班 The first entry is filled in for you. [FILL IN THE REMAINING ROWS, AS INSTRUCTED ABOVE] AD Events Shift Shift An increase in consumer optinism causes a…QUESTION 17 P 100- 50- 65 26 25- h f 25 30 50 6575 a+b+c+d+f+g. k O a+b+c+d. Soomestic Sworld The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If imported rice is banned, the consumption distortion loss is equal to Of+g. Oa+c+f+g Doomestic2. Uganda is a small of Uganda country. The government wants to protect domestic producers of rice by imposing a quota, an ad valorem tariff or an equivalent specific tariff. The three trade barriers would be equivalent in the sense that either one will initially limit imports to a given amount. Once either of these measures is imposed, the government will not switch to a different measure or change its magnitude. Suppose the world supply of rice (relative to the world demand for rice) is expected to increase in the future. You are a lobbyist for producers of rice in Uganda and you only care about their interests. Which trade barrier would you advocate on their behalf - a quota, an ad valorem tariff, or a specific tariff? Which one would you advocate next? Explain carefully using a numerical example. (Feel free to use a graph as well if you want.) (Consider ONLY the interests of PRODUCERS of rice in Uganda.)
- How does protectionism affect the price of the protected good in the domestic market?Why might the unsafe consumer products argument be a more effective strategy (from the perspective of the importing country) than using tariffs or quotas to restrict imports?What might account for the dramatic increase in international trade over the past 50 years?
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