You are watching the nightly news. A political candidate being interviewed says, "I'm for free trade, but it must be fair trade. If our foreign competitors will not raise their environmental regulations, reduce subsidiaries to their export industries, and lower tariffs on their imports of our goods, we should retaliate with tariffs and import quotas on there goes to show them that we won't be played for fools!" A) If a foreign country artificially lowers the cost of production for its producers with lax environmental regulations and direct subsidiaries and then exports the products to us, who gains and who loses in our country, producers or consumers? B) Continuing form part A above, does our country gain or lose? Why? C) If a foreign country subsidizes the production of a good exported to the United States, who bears the burden of their mistaken policy? D) What happens to our overall economic well-being if we restrict trade with a country that subsidizes its export industries? Explain.

In an international market, we say that a country will be an (Blank) of a good if it has the (Blank) advantage in producing that good Answer options exporter and comparative exporter and absolute importer and comparative importer and absolute

Suppose that in a day a worker in the United States can produce 10 bushels of corn or 2 shirts. In Russia a worker can produce 9 bushels of corn or 3 shirts in one day. Which of the following would benefit both the United States and Russia if trade occurred? 1 shirt for 6 bushels of corn -----1 shirt for 4 bushels of corn 1 shirt for 1 bushel of corn 1 shirt for 2 bushels of corn Im doing review for a class and I realize that 1 shirt and for bushels are the correct answer I am just confused on what formula would apply to figue this out

Dear expert please solve this.

3. Import quotas Kazakhstan is a grape producer, as well as an importer of grapes. Suppose the following graph shows Kazakhstan's domestic market for grapes, where SK is the supply curve and DK is the demand curve. The free trade world price of grapes (Pw) is $800 per ton. Suppose Kazakhstan's government restricts imports of grapes to 120,000 tons. The world price of grapes is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+Q. (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of grapes with a quota of 120,000 grapes. 4000 PRICE (Dollars perton) 3800 3200 2800 2400 2000 1000 1200 800 0 0 St 80 120 160 200 240 200 320 360 QUANTITY (Thousands of tons) Pw SK+Q Price with Quota A Change in…

International Trade: End of Chapter Problem In March 2002, then President George W. Bush put a tariff on imported steel as a means of protecting the domestic steel industry. In February, before the tariff went into effect, the United States produced 7.4 million metric tons of crude steel and imported about 2.8 million metric tons of steel products at an average price of $363 per metric ton. Two months later, after the tariff was in effect, U.S. production increased to 7.9 million metric tons. The volume of imported steel fell to about 1.7 million metric tons, but the price of the imported steel rose to about $448 per metric ton. The supply and demand diagram shows this situation (along with an estimated no-trade domestic equilibrium at a price of $625 per metric ton and a quantity of 8.9 million metric tons). For each of the four areas listed, calculate the values of these areas in dollars. How much of the deadweight loss is due to the overproduction of steel by higher-cost U.S. steel…

The following image shows the market for wheat for the country of Palatino. sº is the domestic supply of wheat, and DD is the domestic demand for wheat. Suppose the world price of wheat is $9 per bushel. Suppose a specific tariff of $6 is imposed on each bushel of wheat imported. The net welfare loss from the tariff is represented by the area Figure 19.4 SO Price($) 25 H 15 A E DD 200 300 600 700 Quantity of Wheat (thousands of bushels) a. B and D b. I and H O c. E O d. F e. A and C

Consider again this same graph: Price 8 7 6 5 4 3 2 0 1 10 20 30 40 Tariff Domestic demand 80 Domestic supply 70 50 60 World price Quantity Now let's say the economy opens to trade which is initially free. Assume we're dealing with a small economy. Calculate consumer surplus, carefully following all numeric instructions.

5 3 2 A B D F 4 C E G I 8 H D S 11 I 7) Use the graph above to answer this question. Initially, Spartania is an autarchy and there is no international trade allowed. Then, the country decides to allow free trade. The world price is $2. Which of the following areas best represents the additional economic surplus created when free trade is permitted? A) G+H B) I C) C+E D) A+B+C E) D+F+E+G+H

2. The impact of a tariff Consider a hypothetical example of trade in aluminum between the United States and China. For simplicity, assume that China is the only source of U.S. aluminum imports. The following graph shows the U.S. market for aluminum. Note that in the absence of any trade, the market price for aluminum in the United States is $500 per tonne, and the equilibrium quantity is 250 million tonnes per month. Use the green area (triangle symbol) to show U.S. consumer surplus under free trade with China, and use the purple area (diamond symbol) to show U.S. producer surplus under free trade with China. 1000 Domestic Demand Domestic Supply 900 Consumer Surplus 800 700 Producer Surplus 600 500 400 Free Trade Price 300 200 100 200 250 300 350 400 450 500 50 100 150 QUANTITY OF ALUMINUM (Millions of tonnes per month) PRICE (Dollars per tonne)