US and South Korea reached formal agreement on a plan to lift S. Korea’s long ban on US beef exports. What type of policy was S. Korea’s banning of US beef and why (other than fear of contaminated beef – mad cow disease) did S. Korea do this? Use offer-curve analysis to discuss the effects of this policy change. How does your answer change with your assumption as to whether S. Korea is a large or small country?

US and South Korea reached formal agreement on a plan to lift S. Korea’s long ban on US beef exports. What type of policy was S. Korea’s banning of US beef and why (other than fear of contaminated beef – mad cow disease) did S. Korea do this? Use offer-curve analysis to discuss the effects of this policy change. How does your answer change with your assumption as to whether S. Korea is a large or small country?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 5P

See similar textbooks

Similar questions

In August 1990, many countries decided to retaliate against Iraq for invading Kuwait by refuse to trade with Iraq. What would happen to Iraq's terms of trade and volume of trade If Iraq is in the "inelastic" portion of its offer curve ? Please answer the question with explanation and graph and put Iraq's import good on x-axis.
Steel Industry Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. 1. Because this country exports steel, the world price is represented by P1 or P2. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for each ton sold abroad. 2. With this export subsidy, the price paid by domestic consumers is $???? per ton, and the price received by domestic producers is $???? per ton. 3. The quantity of steel consumed by domestic consumers INCREASES or REMAINS UNCHANGED or DECREASES, the quantity of steel produced by domestic producers INCREASES or REMAINS UNCHANGED or DECREASES, and the quantity of steel exported INCREASES or REMAINS UNCHANGED or DECREASES. 4. TRUE or FALSE:…
The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country’s wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers.
If Italy is said to have an absolute advantage over the United States in the production of wheat, this means that, given the same resources, the United States must have a comparative advantage over Italy in the production of wheat. Italy must have an absolute advantage over the United States in producing all goods. the United States must have an absolute advantage in producing some good other than wheat. Italy can produce more wheat than the United States. Italy has an absolute advantage in all goods that are complements to wheat.
Consider a region with two export products (gloves and socks) and two local goods (tattoos and manicures). The production of each export good is subject to localization economies, so each city specializes in one export good. According to Mr. Wizard, “If my two assumptions (one for export products and one for local goods) are correct, all the cities in the region will be the same size.” Assume that Mr. Wizard’s logic is correct. List his assumptions and explain why together they imply the region’s cities will be the same size.
Country A bans imports of country B beef. What type of poilic was this ban and what economic reasons may country A have had for it? Use offer-curve analysis to discuss the effects of this policy change. How does your answer change with your assumption as to whether A is a large or small country?
Y 100 Country A X Y 40 Country B 40 X 20 a) How much of Good Y will Country B produce if they specialize in their comparative advantage? 40 b) By themselves, if Country B produces 18 units of Y, what is the maximum amount they could produce of Good X? 18 c) If the terms of trade proposed are 5 X for 10Y, how much will Country B be able to consume of Good Y after trade if they specialize in their comparative advantage before trading? 40
Shoes are labor-intensive and satellites are capital-intensive to produce. The United States has abundant capital. China has abundant labor. According to the Heckscher–Ohlin model, which good will China export? Which good will the United States export? In the United States, what will happen to the price of labor (the wage) and to the price of capital?
Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 – 2PY and the export supply curve for good Y in Foreign country is given by: EX = PY – 40. a) What is the free trade price of good Y? Show your work. b) How many units of good Y are traded under free trade? Show your work. c) If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good Y that Foreign exporters receive? Show your work. d) If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good Y that Home consumers pay? Show your work. e) If home country imposes a specific tariff of $15 per unit of good Y imported, how many units of good Y are traded now? Show your work. f) If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work. g) Assume…
Refer to Figure 3.6, page 55. Assume that the graph depicts the U.S. domestic market for corn. How many bushels of corn, if any, will the United States export or import at a world price of $1, $2, $3, $4, and $5? Use this information to construct the U.S. export supply curve and import demand curve for corn. Suppose the only other corn-producing nation is France, where the domestic price is $4. Which country will export corn; which will import it?
Bangladesh eyes investment gain as Japanese firms exit China Japan incentivizing its companies to shift manufacturing facilities out of China and adding Bangladesh to a list of preferred destinations for relocating the factories may give the South Asian nation’s economy a boost.“As the pandemic started in China, Japanese companies needed to diversify” their supply chains further, Naoki Ito, the Japanese ambassador to Bangladesh, said in an interview. “This will provide an opportunity for Bangladesh.”The island nation’s nudge to relocate companies comes at a time when a Special Economic Zone is in the making in Bangladesh to lure Japanese firms’ production facilities. The industrial zone sprawling on 1,000 acres in the Araihazar subdistrict, 32 kilometers away (about 20 miles) from the nation’s capital Dhaka, is expected to bring in $20 billion in Japanese investments, according to the Bangladesh Economic Zones Authority.Japanese manufacturers have already been seeking lower labor costs…
The United States and Taiwan both produce beef and semiconductor chips, as per the PPC provided below. United States A с Quantity of semiconductor chips Quantity of beef Taiwan Quantity of semiconductor chips Quantity of beef 0 175 W 0 80 B 5 140 X 25 60 15 70 Y 75 20 D 25 0 N 100 0