9. Social Regulations Social regulations are policy tools designed to improve health, safety, and the environment, and can be necessary when markets fail to account for these issues themselves. Social regulations impact the behavior of firms across a variety of industries, including steel, energy, chemicals, and automobiles. In achieving their policy objectives of improved societal outcomes, these regulations can carry implications for international trade. Which of the following is a trade-impacting result of the 1975 U.S. energy conservation policy: corporate average fuel economy (CAFE) standards? Check all that apply. Due to relatively strict standards placed on the domestic auto manufacturing industry, automakers began importing foreign vehicles at a higher rate in order to comply with the new regulations. Large U.S. firms that sold both domestically produced and imported vehicles were required to satisfy CAFE requirements for both types of vehicles. The enactment of CAFE standards left U.S. autoworkers more exposed to competition from foreign industry, adding to the employment issues already facing this depressed industry. CAFE standards effectively placed an import barrier on foreign automobiles, aggravating international competitors. By increasing domestic fuel requirements, CAFE standards effectively placed an export barrier on automobiles produced within the United States.
9. Social Regulations Social regulations are policy tools designed to improve health, safety, and the environment, and can be necessary when markets fail to account for these issues themselves. Social regulations impact the behavior of firms across a variety of industries, including steel, energy, chemicals, and automobiles. In achieving their policy objectives of improved societal outcomes, these regulations can carry implications for international trade. Which of the following is a trade-impacting result of the 1975 U.S. energy conservation policy: corporate average fuel economy (CAFE) standards? Check all that apply. Due to relatively strict standards placed on the domestic auto manufacturing industry, automakers began importing foreign vehicles at a higher rate in order to comply with the new regulations. Large U.S. firms that sold both domestically produced and imported vehicles were required to satisfy CAFE requirements for both types of vehicles. The enactment of CAFE standards left U.S. autoworkers more exposed to competition from foreign industry, adding to the employment issues already facing this depressed industry. CAFE standards effectively placed an import barrier on foreign automobiles, aggravating international competitors. By increasing domestic fuel requirements, CAFE standards effectively placed an export barrier on automobiles produced within the United States.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
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Transcribed Image Text:9. Social Regulations
Social regulations are policy tools designed to improve health, safety, and the environment, and can be necessary when markets fail to account for
these issues themselves. Social regulations impact the behavior of firms across a variety of industries, including steel, energy, chemicals, and
automobiles. In achieving their policy objectives of improved societal outcomes, these regulations can carry implications for international trade.
Which of the following is a trade-impacting result of the 1975 U.S. energy conservation policy: corporate average fuel economy (CAFE)
standards? Check all that apply.
Due to relatively strict standards placed on the domestic auto manufacturing industry, automakers began importing foreign vehicles at a
higher rate in order to comply with the new regulations.
Large U.S. firms that sold both domestically produced and imported vehicles were required to satisfy CAFE requirements for both types of
vehicles.
The enactment of CAFE standards left U.S. autoworkers more exposed to competition from foreign industry, adding to the employment
issues already facing this depressed industry.
CAFE standards effectively placed an import barrier on foreign automobiles, aggravating international competitors.
By increasing domestic fuel requirements, CAFE standards effectively placed an export barrier on automobiles produced within the United
States.
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