Exam 9: Application: International Trade

What are the arguments in favour of trade restrictions, and what are the counterarguments? As an economist, do any of these arguments justify trade restrictions? Explain.

What happens when a country allows trade and becomes an exporter of a good

A tariff increases the quantity of imports and moves the market farther from its equilibrium without trade.

What happens if the Japanese steel industry subsidizes the steel that it sells to Canada

Suppose the domestic supply and demand for snowboards in Canada are given by the following equations: Q_S = -110 + 3P Q_D = 390 - 2P a.In the absence of international trade in snowboards,what will the domestic price be b.In the absence of international trade in snowboards,how many snowboards will be sold in Canada c.If Canada could trade snowboards freely with the rest of the world at the price of $80,how many snowboards will be produced in Canada d.If Canada could trade snowboards freely with the rest of the world at the price of $80,how many snowboards will be purchased in Canada e.If Canada trades snowboards freely with the rest of the world at the price of $80,should Canada import or export snowboards And how many f.In the absence of trade,what is the consumer surplus and producer surplus in Canada for the snowboard market g.If Canada could trade snowboards freely with the rest of the world at the price of $80,what is the consumer surplus and producer surplus in Canada for the market for snowboards h.What is the change in total surplus after the opening of free trade

Whereas an export tax allows each firm to decide on its production volume in response to a market price,what does a quota do

Figure 9-6 -Refer to Figure 9-6.How many wagons would this country import or export

Figure 9-2 -Refer to Figure 9-2.If China chooses to trade,what would the price of pencil sharpeners in China be and how many would be sold domestically

Which industry was a major part of the Canadian economy a century ago,but not now

What is a tariff

Figure 9-6 -Refer to Figure 9-6.If this country allows free trade in wagons,what will be the result

When a country takes a unilateral approach to free trade,what happens

Opponents of free trade often want Canada to prohibit the import of goods made in overseas factories that pay wages below the Canadian minimum wage.What will prohibiting such goods likely do

Which of the following is NOT an argument for restricting trade

When a country allows trade and becomes an importer of a good,what happens to consumer surplus and producer surplus

Figure 9-12 -Refer to Figure 9-12.What would consumer surplus be after the tariff

When a country allows trade and becomes an importer of a good,which of the following would NOT be the case

Which of the following are countries that limit foreign trade likely to do

If the United Kingdom imports teacups from other countries,U.K.producers of teacups are better off as a result of trade,but U.K.consumers of teacups are worse off.

What will a tariff and an import quota do to the quantity of imports and the domestic price