a) Given that Vincyland is a small country, thorougly examine the partial equilibrium welfare effects associated with imposing a tariff on their import good given that the prediction of the imported good yields a positive externality.(use theories) b) Should a subsidy have given a more desirable solution. Please explain thorougly Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland.
a) Given that Vincyland is a small country, thorougly examine the partial equilibrium welfare effects associated with imposing a tariff on their import good given that the prediction of the imported good yields a positive externality.(use theories) b) Should a subsidy have given a more desirable solution. Please explain thorougly Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a) Given that Vincyland is a small country, thorougly examine the partial equilibrium welfare effects
associated with imposing a tariff on their import good given that the prediction of the
imported good yields a positive externality.(use theories)
b) Should a subsidy have given a more desirable solution. Please explain thorougly
Assume that Trinbago is a small country that produces wine and motor vehicles, where motor
vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin
(H-O) assumptions hold. The other country in the model is Vincyland.
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