2. Uganda is a small of Uganda country. Thegovernment wants to protect domesticproducers of rice by imposing a quota, anad valorem tariff or an equivalent specifictariff. The three trade barriers would beequivalent in the sense that either one willinitially limit imports to a given amount. Onceeither of these measures is imposed, thegovernment will not switch to a differentmeasure or change its magnitude. Suppose theworld supply of rice (relative to the worlddemand for rice) is expected to increase in thefuture. You are a lobbyist for producers of rice inUganda and you only care about their interests.Which trade barrier would you advocate on theirbehalf - a quota, an ad valorem tariff, or a specifictariff? Which one would you advocate next?Explain carefully using a numerical example. (Feelfree to use a graph as well if you want.)(Consider ONLY the interests ofPRODUCERS of rice in Uganda.)

Ad valorem tariffs are a sort of import tax that are calculated as a percentage of the imports'…

2. 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

2. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For a blue cheese to be called "Roquefort cheese," it must be aged in the natural Combalou caves of Roquefort-sur-Soulzon in France. Because Australia also has a specialized blue cheese, "Meredith Blue," which it wants to protect, the Australian government requires cheese importers to fill out additional paperwork to verify where all imported blue cheese is aged. In this (fictional) scenario, what non-tariff barrier to trade is Australia employing? A. Buy domestic program B.Environmental standards C.Import licenses D.Quantitiative restrictions
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6. The arguments for restricting trade Suppose there is a policy proposal to increase trade restrictions on imported microprocessors to the United States. Read the following scenario and answer the question that follows. The president of the United States argues that the United States should threaten to impose a tariff on Chinese microprocessors in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the president using to support their argument in favor of the trade restriction on microprocessors? Unfair-competition argument Infant-industry argument Jobs argument Using-protection-as-a-bargaining-chip argument National-security argument
Sometimes governments use the 'national security' argument to justify protecting an industry with tariffs. (Choose the best answer) O Stockpiling the product is a plausible alternative to ensure national security interests without risking a trade war. O An export subsidy would always be the first best option Most countries are much weaker than the USA and therfore would never retaliate. O This argument is always plausible since tarrifs are the best way to ensure the industry is able to survive.
The graphs below show domestic supply and demand curves for a good in two countries, with prices measured in the same currency. If these are the only two countries in the world and if they open to free international trade, O. Demanders of the good in Country A will benefit from trade. O. Suppliers of the good in Country A will benefit from trade. O. The welfare of Country A as a whole will fall. O. The quantity of the good demanded in Country B will become larger. O. The price of the good in both countries will be the one labeled PB.
Which of the following is a disadvantage of the General Agreement on Tariffs and Trade's (GATT's) policies? It abolished the Multifiber Arrangement (MFA) designed to promote free trade in textiles. O It increased the average trade tariffs among developed countries. O Non-tariff barriers that were easy to verify and challenge were removed. Trade in services and intellectual poperty (IP) protection was not covered.
Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domestic demand for coffee is: Q = 500-2p and the domestic supply of coffee is: Q* = -150+ 3p
1. Suppose the electronic calculator industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist can use to seek government assistance. Contrast the consequences of imposing a quota, negotiating a VER, and providing a production subsidy. 2. At free-trade prices, a widget sells for $20 and contains $8 worth of tin and $6 worth of rubber. In Country A nominal tariff rates are: What is the effective rate of protection on widgets in Country A? Explain briefly the economic meaning of your result. If this country were a large exporter of widgets, how would that affect your interpretation of the effective rate of protection received by this industry?
2. Winners and losers from free trade Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without international trade the domestic price of meekies is $38. Suppose that the world price of meekies is $36. Assume that if it were to enter the international market for meekies, Meekerton is too small to influence the world price. If Meekerton decides to participate in free trade, then it will Given current economic conditions in Meekerton, complete the following table by indicating whether each of the statements is true or false. Statement meekies. Meekertonian producers were worse off without free trade than they are with it. Meekertonian consumers were better off without free trade than they are with it. True False True True or False: When a nation is too small to affect world prices, allowing free trade will sometimes decrease total surplus in that country, regardless of whether it imports or exports as a result of international trade. False
1. You have just been put in charge of trade policy for Jamaica. Coffee is a recent crop that is growing well, and the Jamaican export market is developing, that is, Jamaica coffee is an infant industry. Jamaica coffee producers come to you and ask for tariff protection from cheap Brazilian coffee. What sorts of policies will you enact? Explain. 2. Does international trade, taken as a whole, increase the total number of jobs, decrease the total number of jobs, or leave the total number of jobs about the same? Hint: Provide your answer (with reasoning) based on what you expect under the partial equilibrium model for the exporting country, the importing country, and the net overall effect on the world.
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12. If the free trade price is lIP and this country imposes a trade tariff of $3, what will be the resulting net welfare loss to the economy? a)$3 b)$27 C)$13.5 d)$40.5 e)$9 13. if the free trade price is IP and this country imposes an import quota of 6 units, what will be the welfare loss to this economy? a)$3 b)$27 c)$13.5 d)$40.5 e)$18