Economists generally agree that trade restrictions are detrimental to trade and reduce government efficiency. Why then do governments restrict trade? Arguments for restricting trade include to promote national defense, to impose sanctions on other countries, to protect domestic infant industries, to create or preserve domestic jobs, to ensure fair competition, and to retaliate for unfair trade policies of other governments Match each action to the correct argument for trade intervention Limits on trade with certain countries import duties on products from a foreign country Subsidies for industries considered vital to national security Subsidies for emerging industries Counterpan oe imports Argument for Intervention To provide for national defense To impose sanctions To protect infant industries To ensure fair competition To provide retaliation Action Counterban on imports Limits on trade with certain countries import duties on products from a foreign country Subsidies for emerging industries Subsidies for industries considered vital to national securitvi

Economists generally agree that trade restrictions are detrimental to trade and reduce government efficiency. Why then do governments restrict trade? Arguments for restricting trade include to promote national defense, to impose sanctions on other countries, to protect domestic infant industries, to create or preserve domestic jobs, to ensure fair competition, and to retaliate for unfair trade policies of other governments Match each action to the correct argument for trade intervention Limits on trade with certain countries import duties on products from a foreign country Subsidies for industries considered vital to national security Subsidies for emerging industries Counterpan oe imports Argument for Intervention To provide for national defense To impose sanctions To protect infant industries To ensure fair competition To provide retaliation Action Counterban on imports Limits on trade with certain countries import duties on products from a foreign country Subsidies for emerging industries Subsidies for industries considered vital to national securitvi

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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do you think countries with distinctively different cultural, historical, and economic histories can effectively enter into a trade agreement? (at least one paragraph). Select one regional trading bloc and discuss the economic motivations for that group of countries to form an agreement. (at least one paragraph) Do you think the countries in the trading bloc you selected are likely to have cross-cultural similarities or differences? Explain. (at least one paragraph).
Which of the following is an argument for restricting trade? Question 30 options: Trade restrictions are necessary to protect infant industries. Trade restrictions are necessary for economic growth. Trade restrictions increase economic efficiency. Trade restrictions make all Canadians better off.
"Poor countries like Malawi have no absolute advantages. They have poor soil, low investments in formal education and hence low-skill workers, no capital, and no natural resources to speak of. Because they have no advantage, they cannot benefit from trade." How would I respond to this statement?
Tariffs and import quotas promote economic inefficiency and reduce the real income of a nation. Economic analysis suggests that nations can gain by eliminating trade restrictions. Which of following best explains why, despite the resulting inefficiencies, trade restrictions exist in the real world? Trade restrictions are favored by many special-interest groups. Trade restrictions do not exist in most real-world scenarios. Trade restrictions promote economic prosperity in the long run. Trade restrictions are favored by most citizens and opposed by most special-interest groups. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Countries engaged in international trade specialize in production based on: A) relative inflation rates. B) relative exchange rates. C) comparative advantage. D) relative levels of GDP.
With perfectly competitive markets protectionist trade policy can increase welfare in the country that employs it if A the country is large enough to affect the world market price and is using import tariffs B the country is small enough not to affect the world market price and is using import quotas C the country is small enough not to affect the world market price and is using export subsidies D the country is large enough to affect the world market price and is using export subsidies
Trade between the United States and Honduras is a losing proposal for the U.S. because Honduran labor is less expensive than U.S. labor. is a losing proposal for Honduras because capital is more abundant in the U.S. than in Honduras. benefits both the United States and Honduras. is a losing proposal for Honduras because U.S. workers are more productive than Honduran workers.
Which of the following has not been a facilitating factor in world trade? general declines in tariffs import quotas dramatic improvements in communications technology O improvements in transportation technology.
Which one of the following will happen due to the bilateral free trade agreement (FTA) between US and S. Korea? import tariffs on Korean goods exported to US will be eliminated import tariffs on Korean goods exported to US will increase import tariffs on American goods exported to S. Korea will increase import tariffs on all foreign goods exported to US will be eliminated
Which of the following is TRUE regarding trade and wages? Countries with low productivity levels will always have lower wages than high-productivity nations whether they trade or not. Trade can increase wages by increasing the productivity of labor. Trade directly increases productivity, which in turn increases wages. Trade helps to equalize wages between high- and low-productivity countries.
A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T- shirt and domestic production rises to 15 million T-shirts per year. The quota on T- shirts causes domestic consumers to A) gain $7 million. B) lose $7 million. C) lose $70 million. D) lose $77 million
Should the Trade Embargo on Cuba Be Lifted? Three years after Fidel Castro took power in Cuba and installed a Communist regime, the U.S. government initiated a trade embargo against the nation. The embargo was intended to put economic pressure on the Cuban government. Today the embargo is still in effect— one of the longest trade embargos in modern history. Opponents on each side of the issue debate its effectiveness. Who is right? As you read the selections, ask yourself: Should the trade embargo on Cuba be lifted or remain in place? PRO A HALF-CENTURY OF FAILURE For almost half a century, the U.S. government has tried to isolate Cuba economically in an effort to undermine the [Communist] regime [of Fidel Castro] and deprive it of resources. Since 1960, Americans have been barred from trading with, investing in, or traveling to Cuba. . . . As a foreign policy tool, the embargo actually enhances Castro’s standing by giving him a handy excuse for the failures of his…