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Recently the United States has been imposed a growing number of tariffs on imports from China. Suppose that other countries around the world begin imposing similarly broad tariffs on the United States and each other. Based on what you have learned in the course, how do you think the global economy and specific industries within it would be affected?

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Related questions

what you think for this ? do you agree or disagree and why ?

I don’t think it’s wise for nations to begin raising tariffs and increasing subsidies when we are faced with a global recession. If a smaller country raises tariffs on a good they are importing, it might not have that big effect on the global economy. However, if a country like China, Japan, United States etc. decide to raise tariffs on imports, it could lead to a global increase in the average tariffs. In the article “Barriers to entry: A rise in protectionism would worsen the already grim outlook for world trade,” it talks about the worldwide average for tariffs. In 1986 they average 26%. If the big economies of the world start increasing tariffs, the rest of the world will eventually follow, leading to a global increase on tariffs. A rise in the tariffs would slow down the global economy even more in the long run. In the article it mentions how trade has picked up immensely when tariffs are lower, and the world GDP was higher compared to when tariffs are increased because countries are more willing to trade. I think they’re still benefits to be gained from trade even when a global recession may be taking place. If tariffs are increased, countries might try to specialize in goods where they don’t have a comparative advantage in. Instead of trading for that good, they will try to produce it domestically. The opportunity cost of choosing to specialize in a good when they don’t have comparative advantage is using those resources elsewhere. Perhaps for producing a good they do have comparative advantage in. Also a decline in trade because of rising tariffs means firms wouldn’t be able to benefit from economies of scale.

11. Indonesia, Vietnam, Thailand, and the Philippines are members of the __________.

A. Organization of Petroleum Exporting Countries

B. Association of Southeast Asian Nations

C. Dominican Republic-Central America Free Trade Agreement

D. North American Free Trade Agreement

___________________________________________________________

7. Which of the following is an example of an autonomous agency of the United Nations?

A. North Atlantic Treaty Organization

B. Security Council

C. World Trade Organization

D. International Monetary Fund

------------------------------------------------------------------------------------

3. Which of the following is provided under the Foreign Sovereign Immunities Act?

A. rules for conflict resolution among DR-CAFTA members

B. endowment of the president with powers to enter into treaties with foreign nations

C. guidelines to govern suits against foreign nations within the United States

D. regulation of commerce between the United States and foreign nations

_____________________________________________________________________

15 .Throughout Christianity, divine and natural laws have been issued in the form of __________.

A. edicts

B. conventions

C. novations

D. canons

_________________________________

18. Which of the following is true of the International Monetary Fund?

A. The IMF is a federal body that consists of representatives from all the states, including federal experts.

B. The IMF is funded from the Superfund created by the Comprehensive Environmental Response, Compensation, and Liability Act.

C. The IMF is an autonomous agency under the UN which promotes sound monetary, fiscal, and macroeconomic policies worldwide.

D. The IMF is responsible for providing one-time grants to needy countries with no terms and conditions attached to the assistance.

____________________________

19. Which of the following statements is true of the NAFTA?

A. It allows a member country to reimpose tariffs if imports are hurting that country's economy or its workers.

B. It disallows any special protection from being extended to specific industries.

C. It disallows NAFTA members from trading with other countries unless a unanimous permission is obtained.

D. It has been hailed by economists as a perfect example of a free trade pact.

Let me introduce you to Arlene, Boyd, Charlie, and Danielle. They signed up for a course in managerial economics and they have decided to offer you advice on the right answers to questions. This will work as follows:

First, I give you a question or scenario where you have to decide on an answer. You read it.

Second, take a look at the four answers given by our four intrepid students. Each will offer analysis of the question or scenario.

Third, decide which analyst you think has given the best answer. Choose that answer as your own!

The best answer will get full points. Usually, other answers may receive partial credit, though not all of them!

With that in mind, here is your first scenario!

The Japanese Navy in World War II needed to send reinforcements from Rabaul to Lae. They had a choice. They could sail their troop ships around the island of New Britain on the north side, through the Bismarck Sea, or they could sail on the south side through the Solomon Sea. The American forces know this as well, and must decide whether to deploy scouts to the north (Bismarck Sea) or the south (Solomon Sea). The sailing takes three days either way, but there is rain on the north side of the island, so it would take a day for the Americans to find the fleet.

If the Americans scout north and Japan sails north, the Americans will spend a day finding the Japanese and will get two days of bombing. If the Americans scout south and the Japanese sail north, the Americans will lose a day and only get one day of bombing. The weather is clearer on the south. If the Japanese sail south and the Americans scout north, the Americans get two days of bombing since they lose a day. If the Americans scout south, however, they will get three days of bombing. What should the Japanese commander do? How about the American? Briefly explain.

Each of our analysts offers you an answer. Choose the one you think is best.

Question 3 options:

A)

Arlene has modeled the situation with a matrix game. Based on her analysis, she believes that the United States has a dominant strategy of sending the scouts north, and with that in mind she believes it does not matter whether Japan sails north or south, since there will then be two days of bombing either way. Japan could essentially flip a coin!
B)

Boyd disagrees with Arlene and thinks that the United States has a dominant strategy to scout south, while Japan has a dominant strategy to sail south. They should both choose south and there will then be three days of bombing.
C)

Charlie has decided that both Arlene and Boyd are wrong, and that the United States does not have a dominant strategy at all. Charlie does, however, think Japan has a dominant strategy of sailing north. Based on that, the United States should scout north and there will be two days of bombing.
D)

Danielle doesn't think anyone has a dominant strategy. She has instead identified Japan sailing north and the United States scouting south as a saddle point and therefore as the correct result, with one day of bombing. Unfortunately (for Americans, anyway), that's the best the United States can guarantee.

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