Suppose that Canada has domestic firms that could supply its entire market for radios at a price of $50, while U.S. firms could supply radios at $40 and Mexico at $30. Suppose that Canada initially has a 50 percent tariff on imports of radios and then forms a free trade area with Mexico. As a result, Canada realizes:
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- 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 andSuppose France charges 2 Euros tariff on imports of a particular product. It can domestically produce this product at 8 Euros. There are only 2 other countries that produce this product: Turkey at 7 Euros, and Brazil at 5 Euros. Without any regional integration agreement, France would consume (French/Brazilian/Turkish) products. When it enters into a customs union agreement with Turkey, it would consume (French/Brazilian/Turkish) products. This is (beneficial/harmful) to the economies involved.Acimera is a small country currently importing goods A, B and C. Each unit of good A produced requires 3 units of good B and 4 units of good C. The current world prices of the three goods are: P (A) = 800, P (B) = 40 and P(C) = 30. The government imposes the following tariffs: 20% on good X, 40% on good B and 50% on good C. Calculate the effective rate of protection for good A.
- Suppose Vietnam has a comparative advantage in producing trousers. The price of a trouser is 1200 Vietnamese Dong (VND) in Vietnam when it has no trading relationships with other countries. If Vietnam engages in international trade, what will happen to the price of a trouser in Vietnam under that scenario? OIt will become more than 1200 VND. OIt will become less than 1200 VND. OIt will remain equal to 1200 VND. None of the other three answer choices. The groups that are negatively impacted by international trade are not fully compensated for their losses from trade. Which of the following factor is a potential reason behind the absence of provision of compensation to the individuals who lose from trade? )It is difficult to detect the groups which accrued losses from international trade. O It is challenging to determine the magnitude of losses of people that were financially hit by international trade. It is difficult to establish that international trade was the primary factor behind…If Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then A) neither country has anything to gain from specialisation and trade. B) it is reasonable to expect that specialisation and trade will benefit both countries. C) it is reasonable to expect that trade will benefit both countries, but specialisation will not. D) it is reasonable to expect that specialisation will benefit both countries, but trade will notThe demand for cameras in a certain country is given by D=8000−30P, where P is the price of a camera. Supply by domestic camera producers is S=4000+10P. Suppose that world price of a camera is $150. If this country decides to trade, which of the following is true? Group of answer choices 3000 cameras will be exported Domestic production of cameras will decrease by 500 Domestic production of cameras will increase by 500 2000 cameras will be imported
- Romania and Georgia both produce shmoos, and are the only producers of shimoos. The market demand and supply in this case are for the Romanian market. The Romanians decide to drop the current tariff on shmoos, which increases the total quantity consumed from 150,000 to 200,000. The tariff change causes the Georgian producers to increase their production from 50,000 to 150,000 If the tariff was a per unit tariff of $10, how much will the Romanian government lose by dropping the tariff Answers: $50,000 $100,000 $150,000 $200,000 None of the above OneDrive Screenshot saved The screenshot was added to your OneDrive.A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is Q = 50+ 5P. The demand curve is Qd = 400-10P. Suppose for political reasons the government counts a dollar's worth of gain to producers as being worth $2 of either consumer gain or government revenue. Assume the government's objective is to maximize national welfare. The change in the government's objective of a tariff of $5 per unit is $. (Round your answer to the nearest penny.)Suppose that Maldonia and Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 16 million pounds of lemons for 16 million pounds of sugar. This ratio of goods is known as the terms of trade between Maldonia and Lamponia. The following graph shows the same PPF for Maldonia as before, as well as its initial consumption at point A. Place a black point (+ symbol) on the graph to indicate Maldonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. Maldonia 64 56 Consumption After Trade 48 PPF 40 32 24 16 16 24 32 40 48 56 64 LEMONS (Millions of pounds) The following graph shows the same PPF for Lamponia as before, as well as its initial consumption at point A. SUGAR (Millions of pounds)
- 14) There are two countries A and B that can produce two products X and Y. The production possibility frontier for country A is given by 4X+7Y=100 while the production possibility frontier for country B is given by 7X+11Y=200. Which of the following is true? A) Country A has a comparative advantage in both products B) Country B has a comparative advantage in both products C) Neither country has comparative advantage in any product D) Both countries have comparative advantage in both products E) Country A has a comparative advantage in X; neither country has a comparative advantage in Y F) Country A has a comparative advantage in Y; neither country has a comparative advantage in X G) Country B has a comparative advantage in X; neither country has a comparative advantage in Y H) Country B has a comparative advantage in Y; neither country has a comparative advantage in X I) Country A has a comparative advantage in X; country B has a comparative advantage in Y G) Country A has a…The following graph shows the domestic demand for and supply of lemons in Panama. The world price (Pw) of lemons is $245 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of lemons and that there are no transportation or transaction costs associated with international trade in lemons. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 405 385 365 345 325 305 285 265 245 225 205 Domestic Demand 0 50 100 Domestic Supply PW 150 200 250 300 350 400 450 500 QUANTITY (Tons of lemons) If Panama is open to international trade in lemons without any restrictions, it will import tons of lemons.The following graph shows the domestic demand for and supply of lemons in Panama. The world price (Pw) of lemons is $245 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of lemons and that there are no transportation or transaction costs associated with international trade in lemons. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 485 455 425 395 365 335 305 275 245 215 185 Domestic Demand A I 1 0 10 20 Domestic Supply 30 40 50 60 70 QUANTITY (Tons of lemons) I 1 A tariff set at this level would raise $ Pw 80 90 100 (?) If Panama is open to international trade in lemons without any restrictions, it will import Suppose the Panamanian government wants to reduce imports to exactly 40 tons of lemons to help domestic…