How are Trumps tariffs affecting the farm economy?

There is a country which produces cars. It costs $11,000 for the domestic producers to produce one car, but they are not competitive on the world market where these cars are sold at $10,000. There is free trade between this country and the rest of the world right now. The government is thinking about applying export subsidies to promote car export. As a government advisor, try to give a hint whether it is good idea or not? Who wins and who loses by applying the subsidies? How much subsidy would allow domestic producers to sell on the world market? Provide the arguments on which your advice is based!

Your textbook discusses the benefits of cheaper imports on pages 171-173. Draw a graph that shows the effects on consumer and producer surplus (gain or loss) that result from a country importing a good.

Whatever can be done by a tariff can be done by a quota.

Identify the various types of tariffs and their purpose.

b. Analyze the impact of tariffs on domestic industries and consumer welfare, considering both short-term and long-term effects.

When the United states puts tariffs on imports, who do you think ultimately pays these tariffs? Is it the foreign companies selling here, American consumers, or both?