It is sometimes argued that, if a government protects a domestic industry (for example, using tariffs or subsidies) that is facing import competition from a more efficient foreign industry, this would be a net gain for the country as a whole, even if the foreign industry is itself protected. Give arguments for and against this point of view, drawing on Ricardo's theory of trade, the Standard Model, and other theory that you consider relevant. Finally, does the size of the country matter?

It is sometimes argued that, if a government protects a domestic industry (for example, using tariffs or subsidies) that is facing import competition from a more efficient foreign industry, this would be a net gain for the country as a whole, even if the foreign industry is itself protected. Give arguments for and against this point of view, drawing on Ricardo's theory of trade, the Standard Model, and other theory that you consider relevant. Finally, does the size of the country matter?

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 4PA

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a) It is sometimes argued that, if a government protects a domestic industry (forexample, using tariffs or subsidies) that is facing import competition from a moreefficient foreign industry, this would be a net gain for the country as a whole, evenif the foreign industry is itself protected. Give arguments for and against this pointof view, drawing on Ricardo’s theory of trade, the Standard Model, and other theorythat you consider relevant. Finally, does the size of the country matter?
a) It is sometimes argued that, if a government protects a domestic industry (for example, using tariffs or subsidies) that is facing import competition from a more efficient foreign industry, this would be a net gain for the country as a whole, even if the foreign industry is itself protected. Give arguments for and against this pointof view, drawing on Ricardo’s theory of trade, the Standard Model, and other theory that you consider relevant. Finally, does the size of the country matter?
a) It is sometimes argued that, if a government protects a domestic industry (for example, using tariffs or subsidies) that is facing import competition from a more efficient foreign industry, this would be a net gain for the country as a whole, even if the foreign industry is itself protected. Give arguments for and against this point of view, drawing on Ricardo’s theory of trade, the Standard Model, and other theory that you consider relevant. Finally, does the size of the country matter?
Question 13 a Please help awnser the following question: Question: It is sometimes argued that, if a government protects a domestic industry (forexample, using tariffs or subsidies) that is facing import competition from a moreefficient foreign industry, this would be a net gain for the country as a whole, evenif the foreign industry is itself protected. Give arguments for and against this pointof view, drawing on Ricardo’s theory of trade, the Standard Model, and other theorythat you consider relevant. Finally, does the size of the country matter?
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