Chapter 20: Q. 12 (page 490)
What are the conditions under which a country may use the unsafe products argument to block imports?
Short Answer
Same rules for foreign imports and domestic industry.
Chapter 20: Q. 12 (page 490)
What are the conditions under which a country may use the unsafe products argument to block imports?
Same rules for foreign imports and domestic industry.
All the tools & learning materials you need for study success - in one app.
Get started for freeName several of the international treaties where countries negotiate with each other over trade policy.
You 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.
Assume two countries, Thailand (T) and Japan (J),
have one good: cameras. The demand (d) and supply (s) for cameras in Thailand and Japan is described by the following functions: QdT
= 60 โ P
QsT = โ5 + 14 P
QdJ = 80 โ P
QsJ = โ10 + 12P
P is the price measured in a common currency used in both countries, such as the Thai Baht.
a. Compute the equilibrium price (P) and quantities
(Q) in each country without trade.
b. Now assume that free trade occurs. The free-
trade price goes to 56.36 Baht. Who exports and
imports cameras and in what quantities?
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?
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?
What do you think about this solution?
We value your feedback to improve our textbook solutions.