Brazil is one of the world’s largest exporters of beef and China is a major purchaser of that beef (an estimated 30% of China’s beef imports in 2016 came from Brazil). However, in March 2017, China, South Korea, the European Union, and Chile suspended imports of meat products from Brazil as a precautionary measure in response toallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?
Brazil is one of the world’s largest exporters of beef
and China is a major purchaser of that beef (an
estimated 30% of China’s beef imports in 2016
came from Brazil). However, in March 2017,
China, South Korea, the European Union, and
Chile suspended imports of meat products from
Brazil as a precautionary measure in response toallegations that meat inspectors and politicians had
received bribes to overlook improper meat packing practices and allow sales of tainted food. How
would the closing of export markets for a country’s
beef products together with a fall in domestic sales
of beef products and an increase in the domestic
domestic markets for beef in the short run?
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