Microeconomics (6th Edition)
Microeconomics (6th Edition)
6th Edition
ISBN: 9780134106243
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 14, Problem 14.1.4RQ
To determine

Why would the government be willing to erect barriers to firms entering an industry.

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Country X is a WTO member. In 2024, the government of country X, alarmed by asudden increase of imported cement on the domestic market, imposed a measurein the form of quantitative restriction on imports of cement. Another Country Y,also a Member of the WTO, involved in the exportation of cement, complains thatthis measure is nullifying and impairing benefits which it is expected to receiveunder the GATT 1994. Country X defends the measure as being permissible underArticle XIX of the GATT 1994 and the WTO Safeguards Agreement.(a) Discuss the evolution of the GATT and the WTO
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