B. If Oman imposing an import tariff on the used car imports from UAE (Foreign),explain the cost and benefits tariff as an importing country to Oman and an exportingcounty to UAE(Use appropriate diagram to explain your answer).Your answer can limit based on following theoretical assumptions:Suppose that there are two countries Home (Oman) and Foreign.Both countries consume and produce used cars which can be costlesstransported between these countries.In each country, it is a competitive industry.Suppose that in the absence of trade the price of used cars at Home exceedsthe corresponding price at Foreign.C. If Oman allowing an export subsidy toDiagrammatically explain its effects on the Oman market (Exporting country) and asan importing country to UAE market.Your answer can limit based on following theoretical assumptions:our vegetable exporters to UAE,Suppose that there are two countries Home (Oman) and Foreign (UAE).Both countries consume and produce vegetables, which can be costlesstransported between these countries.In each country, it is a competitive industry.Suppose that in the absence of trade the price of vegetables at Home is lessthan the corresponding price at Foreign.olugis

Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

B. If Oman imposing an import tariff on the used car imports from UAE (Foreign), explain the cost and benefits tariff as an importing country to Oman and an exporting county to UAE(Use appropriate diagram to explain your answer). Your answer can limit based on following theoretical assumptions: • Suppose that there are two countries Home (Oman) and Foreign. Both countries consume and produce used cars which can be costless transported between these countries. In each country, it is a competitive industry. Suppose that in the absence of trade the price of used cars at Home exceeds the corresponding price at Foreign.

B. If Oman imposing an import tariff on the used car imports from UAE (Foreign), explain the cost and benefits tariff as an importing country to Oman and an exporting county to UAE(Use appropriate diagram to explain your answer). Your answer can limit based on following theoretical assumptions: • Suppose that there are two countries Home (Oman) and Foreign. Both countries consume and produce used cars which can be costless transported between these countries. In each country, it is a competitive industry. Suppose that in the absence of trade the price of used cars at Home exceeds the corresponding price at Foreign.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose firms incur transportation costs to sell their product abroad. How do transportation costs affect the prices that firms charge abroad? Suppose the price offered at home and in the export market is identical, but there are transport costs to ship the good abroad. Does dumping occur? How does an increase in the number of product varieties benefit an importing country? Explain how increasing returns to scale in production can be a basis for trade. Why is trade within a country greater than trade between countries? Why would you expect sellers of branded goods with high upfront research and development costs to be more interested in free trade than producers who do not incur any fixed costs? Focus attention on the Ricardian model, the Heckscher-Ohlin model, and the monopolistic competition model if trade. Consider the intra-industry trade index for each model. What value for the index does each models predict? Explain your answer.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): Domestic production (free trade): Domestic production (after tariff): Domestic consumption (free trade): Domestic consumption (after tariff): The imposition of the tariff on wine will cause the surplus of the domestic producers to by. Select one: O rise; $2.7 million O fall; $500,000 $20 per bottle 500,000 bottles 580,000 bottles 750,000 bottles 640,000 bottles Orise; $2.5 million O rise; $2.75 million
home cheese alc=1hr/kg wine alw=2hrs/gallon foreign cheese alc*=6hrs/kg wine alw*=3hrs/gallon Calculate the Home country's opportunity cost of producing cheese. In which product does the Home (Foreign* ) country has an absolute advantage? Show in which product does the Home (Foreign* ) country has comparative advantage? Calculate the relative supply (RS) With trade, what is the equilibrium range that the relative price of cheese to wine will settle? Supposing that the intersection of RS and RD occurs at PC /PW = 1, what is the implication?
S=20+20P and D = 100-20P are Home's supply and demand curves for wheat. * S = 40 + 20P and D = 80-20P are Foreign's supply and demand curves for wheat. With free trade the price of wheat is $ (Enter your response rounded to the nearest penny.) Suppose home imposes a specific tariff of $0.50 on wheat. Home consumers will now pay $ and foreign's export price is $ (Round your responses rounded to the nearest penny.) Now assume that foreign is a much larger country. Specifically, Foreign's demand curve for wheat is D = 800-200P. Its supply curve is S = 400 + 200P. * With free trade the price of wheat is $ (Round your response rounded to the nearest penny.) Suppose Home imposes a specific tariff of $0.50 on wheat. Home consumers will now pay $ (Round your response rounded to the nearest penny.) $ In which case does the tariff create the greatest terms of trade gains? When Home is and foreign's export price is
Hand written solutions are strictly prohibited
1. Given below are two groups’ (consumers, c, and a special interest group, i) true demands concerning a tariff on snack foods. Demand against (consumers): wtp($) = 80 + 2t Demand for (special interest): wtp($) = 50 - t Where t is the tariff rate. a. Graph the demand curves and explain how much tariff there will be if there were no free riding and all preferences were fully revealed. b. Now assume that “free riding” plagues the consumer group so that their revealed willingness to pay is given by: wtp($) = 30 + t . What are some causes of the “free riding”? Why is this not likely to happen to the producer group? c. Now what will be the equilibrium tariff rate? Graph this scenario in the same graph. d. Relate the outcome to a partial equilibrium tariff graph.
PROBLEM (6) (Optimal tariff setting without the small country assumption) US demand and supply for wheat are Q = 120-p and Q = p respectively. The rest of the world ROW demand and supply for wheat are Q = 240 - 4p and Q = 2p respectively. Suppose the US is imposing $t (per unit) tariff for imports from the rest of the world. What should the tarifft be, in order to maximize Tariff Revenues?
Topic 3 Assignment The following graph shows the domestic supply of and demand for maize in Bangladesh. Bangladesh is open to international trade of maize without any restrictions. The world price (Pw) of maize is $245 per ton and is represented by the horizontal black line. Throughout this problem, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. 470 Supply 420 305 X I I Demand I PRICE (Dollars perton) 445 245 720 D P W 40 80 120 150 200 240 280 320 350…
Suppose that the United States increases its tariff on steel imports. Steel prices to U.S. consumers would be expected to: (A) Increase, and the foreign demand for U.S. exports would increase (B) Decrease, and the foreign demand for U.S. exports would increase (C) Increase, and the foreign demand for U.S. exports would decrease (D) Decrease, and the foreign demand for U.S. exports would decrease.
.
The United States imports a lot of cars, despite having its own auto industry. Each of the following statements are arguments some people could make for restricting imports of cars into the United States. For each statement, identify the threat to the U.S. industry that the argument is trying to counter, and identify the opportunities that would be given up if the argument wins. SELECT THE CORRECT ANSWER a. “Foreign manufacturers are offloading their cheap cars onto the U.S. market. We should stop this so that consumers have access to higher-quality U.S. cars.” -National security requires that strategically important goods be produced domestically. -Protection can help infant industries develop. -Foreign competition may lead to job losses. -Anti-dumping laws prevent unfair competition. -Trade should not enable foreign firms to skirt U.S. regulations. b. “We must foster the innovation of small car companies, like Tesla. Allowing foreign electric vehicle manufacturers…
Consider the case of the following large country (all prices are measured in euros, and quantities are measured in single units): – Domestic demand curve: P = 3600 –3Q – Domestic supply curve: P = 2Q – World free trade price of imports = 140 euros per unit – When the tariff is introduced, domestic prices rise by exactly one third of the amount of the tariff. Calculate the following. Also show your workouts, draw a diagram depicting the importing country market under free trade and with a tariff. With a 30 euro specific tariff: The change in consumers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The change in producers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The amount of tariff revenue, in euros: __________________________________________________________________________________ The change…