You have just been put in charge of trade policy for Jamaica. Coffee is a recent crop that is growing well, and the Jamaican export market is developing, that is, Jamaica coffee is an infant industry. Jamaica coffee producers come to you and ask for tariff protection from cheap Brazilian coffee. What sorts of policies will you enact? Explain.
1. You have just been put in charge of trade policy for Jamaica. Coffee is a recent crop that is growing well, and the Jamaican export market is developing, that is, Jamaica coffee is an infant industry. Jamaica coffee producers come to you and ask for tariff protection from cheap Brazilian coffee. What sorts of policies will you enact? Explain.
2. Does international trade, taken as a whole, increase the total number of jobs, decrease the total number of jobs, or leave the total number of jobs about the same?
Hint: Provide your answer (with reasoning) based on what you expect under the partial equilibrium model for the exporting country, the importing country, and the net overall effect on the world.
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