Suppose you are watching a news programme on television. It's reported that some European politicians have been arguing in favour of quotas to limit imports of textiles into the EU. 1. Is it likely that the EU will be better off if textile imports are limited by quotas? Explain. 2. Will anyone in the EU be better off if textile imports are limited? Explain. In the real world, does every person in a country gain when restricetions on imports are reduced? Explain. 3.

Suppose you are watching a news programme on television. It's reported that some European politicians have been arguing in favour of quotas to limit imports of textiles into the EU. 1. Is it likely that the EU will be better off if textile imports are limited by quotas? Explain. 2. Will anyone in the EU be better off if textile imports are limited? Explain. In the real world, does every person in a country gain when restricetions on imports are reduced? Explain. 3.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter28: International Trade And Finance

Section: Chapter Questions

Problem 18SQ

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Suppose you are watching a news programme on televısion. It's reported that some European politicians have been arguing in favour of quotas to limit imports of textiles into the EU. 1. Is it likely that the EU will be better off if textile imports are limited by quotas? Explain 2. Will anyone in the EU be better off if textile imports are limited? Explain 3. In the real world, does every person in a country gain when restrictions on imports are reduced? Explain. I=
Small Island Developing States (SIDS), particularly our Caribbean islands, are normally accused by our economists of being import dependent. Why then are we always hesitant to impose Tariffs on imports to solve our Balance of Payments problems? Why would it be slow to work on our appetites? Discuss this issue in relation to the concept of Elasticity of Demand. Also, why is the Government always imposing more and more sin taxes on alcohol and cigarettes? Is the Government so concerned about our sins when we consume these demerit goods?
List and briefly describe the principal restrictions that may be applied to a nation’s imports.
If a smaller country imports a good (electronics) from a larger country, is it beneficial for the smaller countryto impose quotas on the good coming from the larger country. Will this affect the consumers of electronics, the domestic producers of electronics and the government?
Why do countries often protect their economies from imports?
Is it good or bad for American consumers when the United states puts tariffs on imports?
2.1 Suppose that the world price of oil is $60 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows: Price ($ Per Barrel) 55 60 65 70 75 U.S. Quantity Demanded 26 24 22 20 18 U.S. Quantity Supplied 14 16 18 20 22 a. On graph paper, draw the supply and demand curves for the United States. b. With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? How
The graph attached shows the car market in Mexico when Mexico places no restriction on the quantity of cars imported. The world price of a car is $10,000. If the government of Mexico introduces a $2,000 tari_ on car imports, what will be the price of a car in Mexico, the quantity of cars produced in Mexico, the quantity imported into Mexico, and the government's tari_ revenue? If the government of Mexico introduces an import quota of 4 million cars a year, what will be the price of a car in Mexico, the quantity of cars produced in Mexico, and the quantity imported? What argument might be used to encourage the government of Mexico to introduce a $2,000 tariff on car imports from the United States? Who will gain and who will lose as a result of Mexico’s tariff?
Summarize the arguments in support of restricting imports.