Question

Refer to Figure 11-4 when answering this question.
a. Redraw Figure 11-4, panel (a), assuming that the production externality is positive so that the SMC curve lies below the supply curve. Label the area c that reflects the change

Question

a. Before the China-ASEAN free-trade area, how much does China import from each trading partner? What is the import price? Calculate the tariff revenue.
b. After the China-ASEAN free-trade area, how much does China import from each trade partner?

Question

a. Fill in the values for W, X, Y, and Z.
b. Suppose that before NAFTA the United States had a 20% tariff on imported semiconductors. Which country supplied the U.S. market? Is it the lowest cost producer?

Question

Here we examine the effects of domestic sales taxes on the market for exports, as an example of the “targeting principle.” For example, in the domestic market, there are heavy taxes on the purchase of cigarettes. Meanwhile, the United States

Question

Consider the case of a Foreign monopoly with no Home production, shown in Figure 9-7. Starting from free trade at point A, consider a $10 tariff applied by the Home government.
a. If the demand curve is linear, as

Question

In this problem, we analyze the effects of an import quota applied by a country facing a Foreign monopolist. In Figure 9-7, suppose that the Home country applies an import quota of X2, meaning that the Foreign firm cannot sell

Question

Refer to the prices of Japanese automobile imports under the VER (Figures 9-5) and answer the following:
a. What component of the price of imported automobiles from Japan rose the most during the period 1980 to 1985?
b.

Question

Figure 9-2 shows the free-trade equilibrium under perfect competition and under monopoly (both with the price PW). In this problem, we compare the welfare of Home consumers in the no-trade situation and under free trade.
a. Under perfect competition,

Question

a. Figure A shows the number of newly initiated trade remedy investigations, including safeguard (SF), China safeguard (CSF), antidumping (AD), and countervailing duty (CVD) (a countervailing duty is used when foreign firms receive a subsidy from their government, and then

Question

Figure 9-1 shows the Home no-trade equilibrium under perfect competition (with the price PC), and under monopoly (with the price PM). In this question, we compare the welfare of Home consumers in these two situations.
a. Under perfect competition,