How would direct subsidies to key industries be preferable to tariffs or quotas?

Q: Why is tariff preferred to quota if protectionist policies are unavoidable. Critically evaluate.

A: The duty imposed on importation and exportation within independent nations is a tariff. It is a…

Q: Give an outline of the following trade restrictions: Tariffs, Quotas, Export Subsidies and VERs.

A: Trade Restrictions is defined as the restrictions that are imposed on the trade of goods and…

Q: Describe the potential advantages to the economy if the government offers an export subsidy

A: A subsidy refers to benefits provided by the government to firms or households. These benefits are…

Q: How does an import quota restrict trade?

A: Trade is the exchange of goods for payment from sellers to buyers. Trade can be domestic or…

Q: Limits on the quantity or total value of specific products imported into a nation are a) export…

A: The quota is imposed by a government that restricts the quantity of a commodity that a country can…

Q: What are the commonly used arguments for the use of tariffs?

A: A tariff is the tax that the government charges on the import and the export to a country dealing in…

Q: Describe the structure of the tariff in the industrial countries?

A: A tariff is a duty forced by an administration of a country or of a supranational association on…

Q: T F Quotas may be set on worldwide imports or onimports from a specific country

A: Quotas on import are limits implemented by the government of a country inorder to manage the…

Q: The WTO discourages the use of quotas because they are:

A: World trade organization is the international organization which deals with the rules and…

Q: Many trade instruments protect domestic producers at the expense of consumers. Which of the…

A: When a government proclaims itself a rule maker or market regulator, it is expected to intervene…

Q: TRUE OR FALSE? EXPLAIN. To protect an industry, it is best when the Effective Rate of Protection is…

A: Answer -     Free Trade area : - It is the are where the all countries can trade freely without fear…

Q: If tariffs, quotas, and subsidies each cause net welfare losses, why are they so common, especially…

A: Tariffs , quotas and subsidies are all different forms of protectionism. Protectionism means trying…

Q: Under what conditions may a tariff actually make a country better off? Show it graphically and…

A: Tariff refers to the situation where the government imposes tax on the imported goods in order to…

Q: Explain why the arguments for tariffs may be valid in the cases of dumping and infant industries.

A: Tariff can be defined as the barrier that is imposed on the imports of goods and services.

Q: Describe what a tariff is and its economic effects

A: Tariff is a duty or a tax imposed on the foreign commodity by the domestic government to restrict…

Q: Explain how lifting an import quota on other countries will affect an exporting country that had…

A: An import quota is an administration forced exchange limitation that restricts the number or…

Q: The domestic supply and demand equations for good A are given by Qs= P - 60 and Qd= 360-2P.  The…

A: From the given information: Qs= P - 60 and Qd= 360-2P The world price of the good is $90.…

Q: Why do low income countries have higher tariffs than high income countries?

A: Tariff is a tax imposed on imported goods and services. It is used to restrict trade. Trade taxes or…

Q: A large or small country imposing a tariff can benefit in terms of social welfare?

A: The nations around the world get involved in trade of goods, services, technologies, ideas, assets,…

Q: What are the benefits and costs of import tariffs?

A: Benefits of import tariffs :  It is one of the best source of government revenue.  Tariffs are a…

Q: Summarize the arguments in support of restricting imports.

A: A country is said to be an open economy when it trades with other country. Free trade occurs when…

Q: What are two pros and two cons of the trade barriers used between the year 2000 to 2010?

A: Trade barriers are limitations on trade by the government on the worldwide exchange of goods and…

Q: What are the similarities and differences between an important quota and an important tariff

A: Tariffs are taxes imposed on imported goods. The main purpose of tariff is to increase revenue and…

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

A: Whatever can be done by a tariff can be done by a quota  I disagree with statement  Tariff is the…

Q: True or False: If a country is open to international trade, the domestic price can differ from the…

A: International trade refers to the trade between countries. There will be imports and exports of the…