Questions from Globalization

Q: What would be the effective rate of protection on bicycles in China

What would be the effective rate of protection on bicycles in China if China places a 50 percent tariff on bicycles, which have a world price of $200, and no tariff on bike components, which together...

Q: The United States simultaneously limits imports of ethanol for fuel purposes and

The United States simultaneously limits imports of ethanol for fuel purposes and provides incentives for the use of ethanol in gasoline, which raise the price of ethanol by about 15 percent relative t...

Q: Return to the example of problem 2. Starting from free trade

Return to the example of problem 2. Starting from free trade, assume that Foreign offers exporters a subsidy of 0.5 per unit. Calculate the effects on the price in each country and on welfare, both of...

Q: Use your knowledge about trade policy to evaluate each of the following

Use your knowledge about trade policy to evaluate each of the following statements: a. “An excellent way to reduce unemployment is to enact tariffs on imported goods.” b. “Tariffs have a more negative...

Q: The nation of Acirema is “small” and unable to affect

The nation of Acirema is “small” and unable to affect world prices. It imports peanuts at the price of $10 per bag. The demand curve is D = 400 - 10P. The supply curve is S = 50 + 5P. Determine the...

Q: For a small country like the Philippines, a move to free

For a small country like the Philippines, a move to free trade would have huge advantages. It would let consumers and producers make their choices based on the real costs of goods, not artificial pric...

Q: Despite major gains, Chinese manufacturing workers have much lower productivity than

Despite major gains, Chinese manufacturing workers have much lower productivity than their U.S. counterparts. Chinese service workers are relatively more productive, but most services aren’t tradable....

Q: Which of the following are potentially valid arguments for tariffs or export

Which of the following are potentially valid arguments for tariffs or export subsidies, and which are not? Explain your answers. a. “The more oil the United States imports, the higher the price of oil...

Q: A small country can import a good at a world price of

A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is S = 20 + 10P. The demand curve is D = 400 - 5P. In addition, each unit of production yiel...

Q: Suppose demand and supply are exactly as described in problem 3,

Suppose demand and supply are exactly as described in problem 3, but there is no marginal social benefit to production. However, for political reasons the government counts a dollar’s worth of gain to...