The minimum level of quota to have an impact on the trade and the conditions when the net welfare loss from an import quota exceeds the net welfare loss from equivalent tariff.

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4. Notice that there is little mention of the U.S. importing food or agriculture. What does that say about America’s farmers? 5. Why do so many of Mexico’s and Canada’s exports go to the U.S? What problems could that create for their economies?

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Chapter 19, Problem 2.5P

To determine

The minimum level of quota to have an impact on the trade and the conditions when the net welfare loss from an import quota exceeds the net welfare loss from equivalent tariff.

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4. Notice that there is little mention of the U.S. importing food or agriculture. What does that say about America’s farmers? 5. Why do so many of Mexico’s and Canada’s exports go to the U.S? What problems could that create for their economies?

8) Suppose the United States imposes a tariff or quota on sugar imports. For each of the following, enter the letter G ifit will gain from the tariff or quota or enter the letter L if it will lose from the tariff or quota.Domestic sugar producers and their workers _______Consumers _______Industries that use sugar and their workers _______9) _______________ are goods and services produced domestically but sold to other countries. _______________ are goods and services bought domestically but produced in other countries._______________ are taxes imposed by a government on imports of a good into a country. a,Tarrifs b, exports c,quotas D,Imports 10) Which of the following are non-tariff barriers to trade?National security grounds.Health and safety requirements.Embargoes.All of the above.

36. What is the solution to the political problem associated with international trade? a) negotiate better trade agreements b) make sure the trade is mutually beneficial – beneficial to both countries c) protect domestic industries against job losses due to imports d) at a minimum, assist those who lose their jobs due to imports, to retrain and get reemployed in other industries. e) compensate those who end up net losers as a result of the trade f) improve the competitiveness of domestic industries to reduce dependence on foreign imports h) impose tariffs on imported goods