EBK INTERNATIONAL ECONOMICS
7th Edition
ISBN: 9780134523866
Author: Gerber
Publisher: YUZU
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Question
Chapter 3, Problem 4SQ
To determine
The argument against the free trade and its reality.
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Students have asked these similar questions
Which of the following statements about the impact of the introduction of free trade is correct?
Multiple Choice
It results in higher prices for domestic producers.
It results in lower prices for foreign consumers.
It results in lower prices for foreign producers
It results in lower prices for domestic consumers.
Tariffs and import quotas promote economic inefficiency and reduce the real income of a nation. Economic analysis suggests that nations can gain by eliminating trade restrictions. Which of following best explains why, despite the resulting inefficiencies, trade restrictions exist in the real world?
Trade restrictions are favored by many special-interest groups.
Trade restrictions do not exist in most real-world scenarios.
Trade restrictions promote economic prosperity in the long run.
Trade restrictions are favored by most citizens and opposed by most special-interest groups.
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Can you answer this please? Explain the concept of a trade embargo and its effect on the country where the embargo has been placed.Discuss the economic rationales for Governments to intervene in international trade which would affect their country.
Chapter 3 Solutions
EBK INTERNATIONAL ECONOMICS
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Similar questions
- Which of the following is one of the implications of the New Trade Theory? Group of answer choices A country can gain by using government policies to promote exports. Consumers lose from the lower quality of goods that trade makes available. Countries as a whole must gain from trade. A country may export a good or import it, but not both.arrow_forwardMake the case in favor of international trade based on comparative advantage. Who are the winners and who are the losers when tariffs or quotas are implemented? Make the case for restricting international trade. Explain your answers thoroughly.arrow_forwardA country will gain relatively more from trade whenA) the world price is much greater than the country's opportunity cost for the good.B) the world price is below the country's opportunity cost of the good.C) the world price is close to the country's opportunity cost of the good.D) trade is regulated.arrow_forward
- When Ozland closes off to trade, it notices that the number of firms in an industry doubles in size. What economic theory would help us explain this phenomenon? Stolper-Samuelson. Melitz. Ricardian. Cournot.arrow_forwardThe main political motives behind government intervention in trade include protecting jobs, preserving national security, responding to other nations' unfair trade practices, and gaining influence over other nations. Discuss using current examples to justify your answer.arrow_forwardA tariff is usually considered to be better than a quota because quotas hurt domestic producers; tariffs hurt foreign producers. tariffs produce tax revenue. tariffs help domestic producers more than quotas. quotas are inflexible. it does not distort trade as much.arrow_forward
- which of the four options best represents specialization and its relationship with trade? absolute advantage economic crises comparative advantage all the abovearrow_forwardWhich of the following is true of foreign trade zones? These are areas that are physically outside U.S. soil but are considered to be inside U.S. commerce. Goods entering foreign trade zones are subject to duty until they leave the zones. Federal government has made it mandatory for U.S. companies to set up manufacturing plants within the foreign trade zones. Companies that have set up manufacturing plants within the foreign trade zones are free from paying duty on defective materials.arrow_forwardMatch each argument for protectionism with the best counter-argument. Protectionism helps new industries develop. Protectionism prevents firms from strategically dumping goods to monopolize the market. Trade creates more jobs than it destroys, i.e., free trade leads to net job creation. Protectionism saves jobs. Answer Bank Many companies have succeeded without protectionist policies. Trade leads to higher wages and opens up more opportunities for individuals in less developed nations. It is often difficult to distinguish between predatory pricing and legal pricing strategies. Protectionism prevents the exploitation of foreign workers who are underpaid.arrow_forward
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