ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 19, Problem 9P
To determine
To explain The arguments in favor of trade restriction
Concept Introduction
Trade restriction:The policies taken by the government to curtail or restrict international trade.
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: (Arguments for Trade Restrictions) Explain the national defense, declining industries, and infant industry arguments for protecting a domestics industry from international competition.
PRICE (Dollars per ton)
980 Domestic Demand
930
880
830
780
730
680
630
580
530
480
0 50
Domestic Supply
Pw
100 150 200 250 300 350 400 450 500
QUANTITY (Tons of oranges)
If Zambia is open to international trade in oranges without any restrictions, it will import
A tariff set at this level would raise $
?
Suppose the Zambian government wants to reduce imports to exactly 200 tons of oranges to help domestic producers. A tariff of $
will achieve this.
tons of oranges.
in revenue for the Zambian government.
per ton
QUESTION 1.Consider two countries: South Korea and New Zealand and two goods: Lamb and Air Pumps. South Koreaimports $210 million worth of lamb from New Zealand and exports $10 million worth of lamb to New Zealand.On the other hand, New Zealand imports $60 million worth of air pumps from South Korea and exports $20million worth of air pumps to South Korea. What is the inter-industry trade measure between these two countries?(a) 2/3.(b) 1/5.(c) 4/5.(d) 1/3.
Explain why.
Chapter 19 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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Similar questions
- Why would countries promote protectionist laws, while also negotiate for freer trade internationally?arrow_forward6. Tariffs and quotas compared Tariffs and quotas can potentially benefit domestic producers of protected products. Which of the following arguments do economists make? Nontariff barriers are more economically efficient. The societal gains from free trade are greater as a result of specialization. The gains to domestic consumers are even higher because of lower prices. This has almost no effect on foreign consumers and foreign producers.arrow_forward36. What is the solution to the political problem associated with international trade? a) negotiate better trade agreements b) make sure the trade is mutually beneficial – beneficial to both countries c) protect domestic industries against job losses due to imports d) at a minimum, assist those who lose their jobs due to imports, to retrain and get reemployed in other industries. e) compensate those who end up net losers as a result of the trade f) improve the competitiveness of domestic industries to reduce dependence on foreign imports h) impose tariffs on imported goodsarrow_forward
- Question 2 Assume that the apple industry in Xanadu has been cut off from international trade until right now. Explain how the government opening their apple industry to trade will affect the country. Be specific. Also, be sure to consider the type of product that apples are Full explain this question and text typing work only thanksarrow_forwardPRICE (Dollars per ton) 865 Domestic Demand 830 795 760 725 690 655 620 585 550 515 7 0 40 80 Domestic Supply PW 120 160 200 240 280 320 360 400 QUANTITY (Tons of oranges) If Honduras is open to international trade in oranges without any restrictions, it will import A tariff set at this level would raise $ Suppose the Honduran government wants to reduce imports to exactly 160 tons of oranges to help domestic producers. A tariff of $ will achieve this. tons of oranges. in revenue for the Honduran government. per tonarrow_forwardWhat are the 7 influential factors affecting foreign trade? detailed explanation plsarrow_forward
- The imposition of an import tariff by a small nation: (Explain the right answer as well as the wrong answers) (a) reduces the relative price of the imported commodity for domestic producers and consumers (b) increases the relative price of the imported commodity for domestic producers and consumers (c) increases the relative price of the imported commodity for the exporting nation (d) any of the above is possiblearrow_forward3. Factors that influence international trade World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period. Which of the following help to explain the increase in international trade and finance since the 1950s? Check that apply. -Better high-speed rail lines -Increases in the global population -Services such as web conferencing and teleconferencing that facilitate international meetings -International trade agreements such as the North American Free Trade Agreement (NAFTA)arrow_forwardSeveral Canadian institutions and actors participate to the growth of international trade. So, they participate to the growth of international trade in services. Say Why? Who are these actors? What are the main institutions? course: export of services write 8 lines onlyarrow_forward
- Question 40 When a country opens for trade and becomes an exporter of a good, which of the following is a consequence? The price received by domestic producers of the good decreases. The gains of domestic consumers of the good exceed the losses of domestic producers of the good. The gains of domestic producers of the good exceed the losses of domestic consumers of the good. The price paid by domestic consumers of the good decreases.arrow_forward3: Tariffs and Non-tariff instruments are a huge problem for international trade. a) Why does the efficiency of an import tariff depend on the price elasticity of demand? b) Who is on the winner's side and who on the loser's side if we have to deal with aa) anti dumping tariffs, ab) educational tariffs and ac) with administrative obstacles?arrow_forwardYou have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing well and the Malawian export market is developing. As such, Malawi coffee is an infant industry. Malawi coffee producers come to you and ask for tariff protection from cheap Tanzanian coffee. What sorts of policies will you enact? Explain.arrow_forward
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