Chapter 20: Q. 13 (page 490)
Why is the national security argument not convincing?
Short Answer
It is not practical as it does not solve the core problem.
Chapter 20: Q. 13 (page 490)
Why is the national security argument not convincing?
It is not practical as it does not solve the core problem.
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Get started for freeWhat is the general trend of trade barriers over recent decades: higher, lower, or about the same?
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?
Is international trade likely to have about the same effect on everyoneโs wages?
Assume a perfectly competitive market and the exporting country is small. Using a demand and supply diagram, show the impact of increasing standards on a low-income exporter of toys. Show the tariff's impact. Is the effect on toy prices the same or different? Why is a standards policy preferred to tariffs?
The country of Pepper land exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in Table.
Price\( | Qd | Qs |
---|---|---|
60 | 230 | 180 |
70 | 200 | 200 |
80 | 170 | 220 |
90 | 150 | 240 |
100 | 140 | 250 |
Table 20.6 Pepper land
Price\) | Qd | Qs |
---|---|---|
60 | 430 | 310 |
70 | 420 | 330 |
80 | 410 | 360 |
90 | 400 | 400 |
100 | 390 | 440 |
Table 20.7 Land of Submarines
a. What would be the equilibrium price and quantity in each country in a world without trade? How can you tell?
b. What would be the equilibrium price and quantity in each country if trade is allowed to occur? How can you tell?
c. Sketch two supply and demand diagrams, one for each country, in the situation before trade.
d. On those diagrams, show the equilibrium price and the levels of exports and imports in the world after trade.
e. If the Land of Submarines imposes an antidumping import quota of 30, explain in general terms whether it will benefit or injure consumers and producers in each country.
f. Does your general answer change if the Land of Submarines imposes an import quota of 70?
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