You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the United States and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at the time were Malaysia and Hong Kong. The U.S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?

As per attached file

In the "Krugman model" of New Trade Theory, increasing returns to scale and network effects play a significant role in international trade patterns. Suppose two countries are identical in every respect except for the fact that one country has a slightly larger initial market for a particular industry. According to the model, what is the likely long-term outcome for the industry? A) The industry will be evenly distributed between the two countries due to comparative advantage. B) The industry will eventually concentrate in the country with the larger initial market, leading to monopolistic competition and economies of scale. C) Both countries will experience identical growth rates in the industry due to constant returns to scale. D) The industry will disappear in both countries due to competitive pressures from other industries.

GlobalCell is an American firm producing cell phones. GlobalCell imports cell phone components from Japan and assembles them domestically. Suppose that in the United States, a cell phone sells for $100 and that 60% of the cell phone's value comes from the value of the imported components. The United States imposes a 30% tariff on cell phones and a 10% tariff on the cell phone's components. Assume that costs of producing components are the same in the United States and Japan and that transit costs are nonexistent. Based on the information provided, the effective rate of protection that GlobalCell receives from the tariff is A. 60% B. -20% C. -13.3% D. 26.7%

Exporting vs FDI: The Proximity-Concentration Trade-Off. Your firm wants to sell its product in each of several foreign countries, and you must decide whether to do so by exporting or by producing locally for that market through FDI. Suppose that in each country the demand for the product is the same, and is given by: P = 15 - Q, where P is the price your firm charges in that country in dollars and Q is the quantity sold there. In addition, the marginal cost of production in any country is the same, and is equal to $4 per unit. Wherever you choose to produce, your firm is a monopolist. To produce in a foreign country, your firm must incur a fixed cost equal to $21. On the other hand, to produce here and export to a country that is d miles away requires a transport cost of (d/1000)| dollars per unit shipped. a. If you export to a given country located at a distance d, what would the quantity sold, the price charged and the profits be? (all as a function of distance) b. If you sell in a…

Manny ships wheat from the United States to Japan. Wheat is also shipped to Japan from Australia. Japan recently reduced its customs duties for wheat shipped from Australia. If Manny demands a similar reduction for the wheat he ships to Japan:   a) Japan must grant the same reduced customs duties to the United States and all other World Trade Organization members.   b) Japan is not required to give the same customs duties reduction to the United States because of regional trade agreements.   c) Japan is not required to give the same customs duties reduction to the United States, because each country has a separate agreement.

On his first day in office, President Donald Trump took the United States out of the Trans Pacific Partnership (TPP), a proposed free trade deal with 11 other countries in the Asia-Pacific region, representing nearly 40% of global GDP. If the TPP had come into existence, the countries in the TPP would NOT be in violation of the most-favored nation (MFN) principle in the World Trade Organization (WTO) by giving each other preferential trade access. Why? A. There is an exception to MFN regarding the Generalized System of Preferences. Because Vietnam, a developing country, was one of the 12 members of the TPP, that exception applies to the whole partnership. B. Because the United States has the largest economy in the world, it gets to decide when MFN applies and when it doesn’t. C. There is an exception to MFN regarding regional trade agreements (RTA), and because all the proposed members inhabit the Asia-Pacific region, the TPP would have been an RTA, and therefore, members could give…

Suppose that Canada imports pearl necklaces from India. The free market price is $111.00 per necklace. If the tariff on imports in Canada is initially 26%, Canadians pay $ per necklace. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Canada reduces its import tariffs to 13%. Assuming the price of pearl necklaces is still $111.00 per necklace, consumers now pay the price of $ Based on the calculations and the scenarios presented, the Uruguay Round most likely hurts consumers hurts consumers in India. per necklace. in Canada and

Suppose the market for a certain manufactured product in Country 1 is given by the following functions: QD = 140 - 20P QS = -20 + 20P Where QD and QS (in relevant units) are the demand and supply functions, respectively and P is the unit price of the product. Suppose the world price of the product is P2.00 (equivalent) and the government is intending to impose a 50 percent tariff rate on its imports. There is no protection cost to the economy arising from a direct subsidy of P20 to producers: Select one: O True O False

What is the tariff rate (in cents per kg) charged by U.S. on live buffalo originating in each of the following countries upon importation of the live buffalo into the United States? For purposes of this question, assume (i) that the live buffalo are normal bovine animals and are neither purebred animals being imported for breeding purposes nor are they part of (or being imported to be part of) a travelling circus or travelling menagerie and (ii) no sanction, quota, embargo or similar restriction bars the importation. Country of Origin Japan South Korea Australia North Korea Tariff rate (duty) (cents per kg)