Restrictions on imports may not include tariffs. O True O False

Sometimes governments use the 'national security' argument to justify protecting an industry with tariffs. (Choose the best answer) O Stockpiling the product is a plausible alternative to ensure national security interests without risking a trade war. O An export subsidy would always be the first best option Most countries are much weaker than the USA and therfore would never retaliate. O This argument is always plausible since tarrifs are the best way to ensure the industry is able to survive.

"Whatever can be done by a tariff can be done by a Quota". Agree or Disagree and why?

Suppose a country has abundant capital but scarcelabor. Which group would be more harmed bya trade embargo: owners of capital or laborers?