A. The free trade price of Shoes is $25 while the autarky price in a SMALL country is $50. This country produces 10 million shoes and consumes 20 million shoes in free trade. A tariff of $10 increased the production of shoes to 12 million units and consumption decreased to 18 million units. The change in producer surplus in this country with this policy is
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- A semiconductor is a key component in your laptop, cell phone, and iPod. The table providesinformation about the market for semiconductors in the United States. Producers ofsemiconductors can get $18 a unit on the world market.a. With no international trade, what would be the price of a semiconductor and how manysemiconductors a year would be bought and sold in the United States?b. Does the United States have a comparative advantage in producing semiconductors?c. Draw a graph (graph is for your own reference, not required to be attached in the answersheet) to illustrate the U.S. supply and demand market for semiconductors. What is the pricewith free international trade? What is the quantity of semiconductors produced in U.S. andtotal quantity bought by U.S. people and the quantity exported from other countries?d. Due to loss of competitiveness brought on by appreciation of the exchange rate and the highproduction costs, U.S. government reduce the export (or limit the supply of…Plz answer the all you definitely get upvote 1. When should a company ideally enter a foreign market? a) when the foreign market is saturated b) when the costs of labor and resources are higher than the domestic costs c) when the demand for the product declines in the domestic market d) when competition in the domestic market is the least 2. Which of the following hampers the growth of global economy? a) spread of capitalism around the world. b) encouraging protectionism c) terms and conditions of NAFTA 3. Companies that re willing or able to invest millions of dollars in operations abroad should ideally operate through _____? a) franchising agreements b) multinational corporations c) licensing agreements d) shell corporationsplz help Assume country A produces and consumes cupboards. The autarky price of a cupboard in country A is USD100 and the domestic production and consumption in the absence of trade is 160 units. Assume further that the free trade of cupboards is USD40, explain the partial equilibrium effect of a 50% tariff imposed by Country A on cupboards.
- a) What is a tariff ? Does a tariff have a result from an import quota? b) Suppose a tariff allowed an industry to create 200,000 jobs paying an average of $22,500 per year. Before the tariff consumers bought 3 billion units (60% imported) at a price of $30. After the tariff they bought 2.75 billion units (none imported) at a price of $36. How much did total consumer spending on the good increase and how much per new job? c) True or False and explain: Free trade allows countries to specialize in producing those goods in which they have the comparative advantage, which in turn, results in increased world production and income.Home's demand curve for wheat isD = 100- 20P.Its supply curve isS= 20 + 20P.Derive and graph Home's import demand schedule. What would the price of wheat be in the absence of trade?2. Now add Foreign, which has a demand curve*D=80-20pand a supply curve = 40 + 20P.Derive and graph Foreign's export supply curve and find the price of wheat that would prevail in Foreign in the absence of trade.b. Now allow Foreign and Home to trade with each other, at zero transportation cost.Find and graph the equilibrium under free trade. What is the world price? What isthe volume of trade? 3. Home imposes a specie tariff of 0.5 on wheat imports.a. Determine and graph the effects of the tariff on the following: (1) the price ofwheat in each country; (2) the quantity of wheat supplied and demanded in each country; (3) the volume of trade.b. Determine the effect of the tariff on the welfare of each of the following groups:(1) Home import-competing producers; (2) Home consumers; (3) the Homegovernment.c.…E4 Home’s demand curve for wheat is D = 200 − 40P Its supply curve is S = 40 + 40P Derive and graph Home’s import demand schedule. What would the price of wheat be in the absence of trade? Now add Foreign, which has a demand curve D∗ = 160 − 40P and a supply curve S ∗ = 80 + 40P 1. Derive and graph Foreignâs export supply curve and find the price of wheat that would prevail in Foreign in the absence of trade. 2. Now allow Foreign and Home to trade with each other, at zero transportation cost. Find and graph the equilibrium under free trade. What is the world price? What is the volume of trade? Home imposes a specific tariff of 0.5 on wheat imports. 1. Determine and graph the effects of the tariff on the following: (1) the price of wheat in each country; (2) the quantity of wheat supplied and demanded in each country; (3) the volume of trade. 2. Determine the effect of the tariff on the welfare of each of the following groups: (1) Home import-competing producers; (2) Home…
- Suppose country B is a small export country (price taker) in the world market of lamp trade. Its domestic demand on and supply for lamp are: D=18-P, S=-12+2P. The world market price of lamp is 14. (a) Calculate the equilibrium price and quantity of lamp in country B before trade. (c) Calculate B’s quantity of exported lamp under free trade. (c)Draw graph and calculate the net welfare effect of free trade on B’s consumers, producers and the whole country.Question 2: Suppose Qd= 100- 10P Qs = 10P a. Draw a graph using the supply and demand equation assuming no trade. Calculateequilibrium P, Q, consumer, producer and total surplus. b. Draw another graph assuming that trade is allowed. Calculate quantity domesticallyconsumed, domestically produced, imports, consumer surplus, producer surplus assumingworld price =$3. c. What happens to consumer surplus and producer surplus after trade? Does total surplusincrease or decrease after trade? Show your calculations. i need the the diagram4. Imports and Market Supply. Two nations supply sugar to the world market. Lowland has a minimum supply price of 10 cents per pound, while Highland has a minimum supply price of 24 cents per pound. For each nation, the slope of the supply curve is 1 cent per million pounds. a) Draw the individual supply curves and the market supply curve. At what price and quantity is the sup- ply curve kinked? b) The market quantity supplied at a price of 15 cents is____________ million pounds. The market quantity supplied at a price of 30 cents is ____________million pounds.
- 1. Assume the Philippines is an importer of television in the United States. Consumers buy 800,000televisions per year, half of which are produced domestically, and half are imported. Assume thatthe world price is $150 each television. If there were no televisions sold, a local consumer'swillingness to buy is $400 and the costs to sellers is $100.A. Draw a diagram showing the world price, market supply and market demand for televisionin the local market.B. Show and calculate consumer and producer surplus at the world price. Show all the requiredsolutions.C. Suppose the Philippine government restricts the importation of television by putting a 20percent tariff rate. Suppose this tariff rate leads to a fall of the consumers demand to700,000 televisions each year, and local producers supply 500,000 each year. Illustratethese changes in your diagram above. How many televisions should the country imports?Calculate the change in consumer surplus, producer surplus and total surplus.D.…61.Comparative advantage in production of the good measured on the horizontal axis is identified with a straight-line production possibilities frontier that has a slope that is A)larger in magnitude (or absolute value). B)smaller in magnitude (or absolute value). C)positive. D)larger in magnitude (or absolute value.) and positive. 62.A quota that limits U.S. imports of cane sugar A)harmsU.S. sugar consumers. B)helpsU.S. cane sugar producers. C)helpsU.S. corn syrup (sweetener) producers. D)all of the options are correct. 63.A quota that limits U.S. imports of cane sugar A)harmsU.S. consumers more than it helps U.S. producers. B)helpsU.S. producers more than it hurts U.S. consumers. C)harms foreign producers more than it helps U.S. producers. D)helps both U.S. consumers and U.S. producers at the expense of foreign producers. 64.Of approximately 140 million jobs in the U.S., each year approximately A)31 million are eliminated and 30 million are created.…Assume the United States is an importer of televisionsand there are no trade restrictions. U.S. consumersbuy 1 million televisions per year, of which 400,000 areproduced domestically and 600,000 are imported.a. Suppose that a technological advance amongJapanese television manufacturers causes theworld price of televisions to fall by $100. Draw agraph to show how this change affects the welfareof U.S. consumers and U.S. producers and how itaffects total surplus in the United States.b. After the fall in price, consumers buy 1.2 milliontelevisions, of which 200,000 are produced domesticallyand 1 million are imported. Calculate thechange in consumer surplus, producer surplus,and total surplus from the price reduction.c. If the government responded by putting a$100 tariff on imported televisions, what wouldthis do? Calculate the revenue that would beraised and the deadweight loss. Would it be agood policy from the standpoint of U.S. welfare?Who might support the policy?d. Suppose that the…