Question
The Uruguay Round of the GATT began a process of phasing out the use of voluntary export restraints. Why did they come into widespread use in the 1980s? For example, given that VERs are a form of quotas, and that they create

Question
Under what conditions may a tariff actually make a country better off?

Subject
business-economics

Question
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given by the following equations:
Demand: P = 80 – 2Q
Supply: P = 5 + 3Q
a. How much is consumed?
b.

Question
Graph the supply and demand of a good that is both produced domestically and imported. Assume that the country is not large enough to affect the world price. Illustrate the effects of a tariff on imports. Discuss the following:
a. Income

Question
Figure 5.3 in the text illustrates the case of an industry that generates external social benefits with its production. Draw a supply and demand graph for an industry that creates external costs with its production. Compare and contrast the market determined price

Question
What are some of the common problems in implementing industrial policies?

Subject
business-economics

Question
What are the theoretical justifications for targeting the development of specific industries?

Subject
business-economics

Question
When the United States signed a free trade agreement with Canada (1989), no one in the United States thought twice. When the agreement with Mexico was signed (1994), there was significant opposition. Use the concepts of interindustry and intraindustry trade to explain

Question
How might trade hurt a country if it imports goods that are produced under conditions of external economies of scale?

Subject
business-economics

Question
What are the three key incentives for firms in a particular industry to cluster together in geographical region?

Subject
business-economics