Labor unions and businesses in the heavy equipment industry have asked the U.S. Congress to place a tax on imported equipment in order to make it more expensive. They hope that this will allow U.S. producers to be more competitive. The U.S. heavy equipment industry appears to be seeking a(n): CAVAB revenue tariff. protective tariff. injunction. import licensing. nontariff barrier.
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- Korea’s demand for computers isQK = 2, 000 − PkIts supply isQK = −200 + PkChina’s demand for computers isQC = 1, 000 − Pc Its supply isQC = Pc1. Suppose that Korea imposes a specific tariff of $100 on computerimports. Calculate the price of computers in each country and thequantity of computers supplied and demanded in each country. Alsocalculate the volume of trade.3 Price($) 25 15 9 5 1 R A CS B 15 % G DD 0 200 300 600 700 Quantity of Wheat (thousands of bushels) Refer to Exhibit 19.4, which shows the market for wheat in the country of Palatino. SD is the domestic supply of wheat, and DD is the domestic demand for wheat. Suppose the world price of wheat is $9 per bushel and a specific tariff of $6 is imposed on each bushel of wheat imported. The net welfare loss from the tariff is represented by area(s). Oa. I and H. Ob. E. c. F. Od. B and D. Oe. A and C. A bike 2 A bike jpg.jpg A bike 2.jpg Show AO ENG 6:52 D 6/12/2 fa prt H 5 C E SD T f7 Y H 4- & 7 + U * 8 fo f10 ► 11 K|| fyl 112In 1932, U.S. manufacturers, which used to enjoy steady relationships with their foreign distributors and export nearly 60% of their output, realized that their exports had fallen to only 20% of total output. Which of the following is the most likely reason for this decrease in exports? O The low quality of U.S. products O war between the United States and Canada O Retaliatory tariffs by trading partners The signing of the General Agreement on Tariffs and Trade (GATT) in 1947 resulted in the adoption of several new trade policies. In the following table, indicate if each of the policies listed was a result of GATT. Then, complete the last column by identifying the means by which each GATT policy was implemented. Policy GATT Policy Implementation Promotion of protectionism Clear and public trade rules Promotion of lower trade barriers Yes v Institution of the WTO Promotion of trade transparency Settling trade disputes In the 1960s, multilateral negotiations called the Uruguay Round…
- The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted. Price aib f D D₁ h So Si Sa Da O The producer surplus falls by area (a + b). O The producer surplus increases by area (a + b +c+d). The producer surplus falls by area (a+b+c+e+f+g+h). O The producer surplus increases by area (a + b + c). Domestic price with subsidy World price World price with subsidy Quantity What is the net impact on the producer surplus of the export subsidy provided by the domestic government?Refer to the graph below of a large country that has imposed a tarifft on this good. The terms-of-trade gain for this country is , and the deadweight loss suffered by this country is Price $36 $30 $26 Home market S D 20 40 80 100 Quantity Price World market 40 80 ImportsThe following graph shows intra-industry trade in the United States for two types of yogurts: Yoplait (a famous French brand) and Dannon (a famous American brand): 13 12 11. 10 A 9 7 1. -1 0 -11 O AKL. O AGH. Supply of Yoplait 3 O GHLK. O HPL. US Market for Yoplait (Y) Demand for Yoplait Yoplak 10 11 12 13 14 15 -1 12 Price 11 10 A 0 US Market for Dannon (D) Refer to the above graph. At the price of $6, intra-industry trade leads to a consumers surplus for Y equal to: Supply of Dannon Demand for Dannon Dannon 10 11 12 13
- Why does the efficiency of an import tariff depend on the price elasticity of demand?Explain how an export subsidy is theoretically meant to work. Think of the application to “infant industryHome's demand curve for wheat is P = 10 - (1/20)Qd. Its supply curve is P = 4 + (1/20)Qs Eoreign's demand curve for wheat is P * = 8 - (1/20)Qd* Its supply curve is P* = 2+(1/20)Qs* Determine the effect of the tariff on Home import-competing producers APS = Home consumers ACS = Home government tariff revenue AGR = Adding these effects together AW = APS + ACS + AGR =
- Explain with the help of diagrams:1. Assume that the Indian JuteIndustry is at present in a equilibrium state with the producers supplyingjute bags only to the domestic market atthe prevailing market prices. Apart from domestic suppliers, Indian juteindustry faces competition from Bangladesh. Explain with the help ofsupply-demand curves how the following events affect the equilibrium in thejute industry?a. Poor domestic demandb. Increasedcompetition from Bangladeshc. Cement industry,which is one of the largest users of jute bags,exempted from mandatory jute packagingd. Farmers, instead ofproducing jute, use their farm lands for some other purposes.10 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €1 is levied against each imported baseball cap. C. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap)The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw) of soybeans is $540 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. TRICKY YALL 855 820 PRICE (Dollars per ton) 785 750 715 680 645 610 575 540 Domestic Demand 105 0 40 A Domestic Supply Pu NO 120 160 200 240 260 320 340 400 QUANTITY (Tons of soybeans) If Guatemala is open to international trade in soybeans without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 160 tons of soybeans to help domestic producers. A tariff of tons of soybeans. per