Please correct answer and don't use hand raiting Homework # 3 for International Trade15th at 11:00 pm on Blackboard.Due Tuesday, Oct.Assume that the United States, as a steel-importing nation, is large enough that changes in thequantity of its imports influence the world price of steel.800600560Sa2040100120Showt5 dowa. With free trade, what is the equilibrium price of steel? At this price, how many tons ofsteel are purchased by U.S. buyers? How many are supplied by domestic producers?And, how many are imported?b. To protect its producers from foreign competition, suppose the U.S. governmentlevies a specific tariff of $240 per ton on steel imports. With the tariff, what is thedomestic price of steel? At this price, how many tons of steel are purchased by U.S.buyers? How many are supplied by domestic producers? And, how many areimported?C. Calculate the consumption, protective, redistribution, domestic revenue, and terms-of-trade effect.d. What impact does the tariff have on the overall welfare of the United States?

Part (c): The effects of the tariffConsumption effect: The consumption effect measures the decrease…

Answered: Homework # 3 for International Trade…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 2QCMC

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Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
You just overheard your friend say the following: 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 you respond?
If trade increases world GDP by 1 per year, what is the global impact of this increase over 10 years? How does this increase compare to the annual GDP of a country like Sri Lanka? Discuss. Hint To answer this question, here are steps you may want to consider. Go to the World Development Indicators (online) published by the World Bank. Find the current level of World GDP in constant international dollars. Also, find the GDP of Sri Lanka in constant international dollars. Once you have these two numbers, compute the amount the additional increase in global incomes due to trade and compare that number to Sri Lankas GDP.
If opening up to free trade would benefit a nation, then why do nations not just eliminate their trade barriers, and not bother with international trade negotiations?
Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?
Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of 10 per phone and South Korea can produce 50 million mobile phones at 5 per phone. Assume these phones are the same type and quality and there is only one price. What is the minimum price at which both countries will engage in trade?
Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out Effects of Trade Barriers.
The country of Pepperland exports steel to the Landof Submarines. Information for the quantity demanded(Qd) and quantity supplied (Qs) in each country, in aworld without trade, are given in Table 34.6 and Table34.7. a. What would be the equilibrium price andquantity in each country in a world withouttrade? How can you tell?b. What would be the equilibrium price andquantity in each country if trade is allowed tooccur? How can you tell?c. Sketch two supply and demand diagrams, one foreach country, in the situation before trade.d. On those diagrams, show the equilibrium priceand the levels of exports and imports in the worldafter trade.e. If the Land of Submarines imposes an antidumping import quota of 30, explain in generalterms whether it will benefit or injure consumersand producers in each country.f. Does your general answer change if the Land ofSubmarines imposes an import quota of 70?
Currently Turkey is importing oil. Note that some oil is already being produced in Turkey. Assume Turkey is willing to decrease its energy dependecy, and willing to reduce oil imports. Assume either, demand, supply or world price change in a way that would turn Turkey into an oil exporting country. Show on a graph with Turkish demand Turkish supply and world price, how the change, can reduce the oil imports to zero. What factor may be behind the change you have chosen?
Plz give the explanation
4. Welfare Impact of Trade Continue to refer to the previous diagram: https://drive.google.com/file/d/isua-NWRPupuFKM1JbN9g6TuBmRxyAjgC/view?usp=sharing Which of the following statements is true about Econland when it goes from not participating in international trade to participating in international trade? Suppose there is no government policy, and that the world price is $2. Overall, Econland is better off with international trade because consumers and producers are both better off than when they were not trading with another country. Overall, Econland is better off with international trade, but consumers are worse off and producers are better off than when they were not trading with another country. Overall, Econland is worse off with international trade because total surplus is lower than when they were not trading with another country. o Overall, Econland is worse off with international trade, but consumers are better off and producers are worse off than when they were not…
630 550 475 450 425 Sus Sus.w.1 Sus w Dus 325 5 10 20 30 40 50 55 Tons of Steel Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. When trade occurs the overall (United States plus world) supply schedule of steel is denoted by SU.S.+W. If a specific tariff of $100 is imposed on imported steel, calculate the welfare effects listed below. Using the graph above to calculate the: 1. Redistributive effect II. Protective effect III. Domestic revenue effect IV. Terms of trade effect V. Consumption effect

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