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13. Why does international trade occur? What does it mean to run a deficit in the merchandise trade balance?
14. Distinguish between a tariff and a quota. Who benefits from and who is harmed by such restrictions on imports?

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Related questions

1. Explain what the terms of trade are in international trade.

2. What is the exchange rate in international trade?

3. What is the difference between a tariff and an import quota?

4. Do you believe the United States should impose international trade restrictions and why do you believe this?

Step 1: Read the following scenario.

Imagine that China opens its borders to international trade, but with greater restrictions than the U.S. and European Union (EU). They impose a tariff of Ā„10 per dollar value of each imported good and an import quota on all goods, as well as other health, safety, and regulatory barriers.

Step 2: Identify the winners and losers and answer the following questions.

Who stands to gain and who stands to lose in China, the U.S., and members of the EU?

What are the potential impacts that these restrictions may have on international trade?

What are the potential justifications for the implementation of these trade restrictions?

1. A government limit on the quantity or total value of imports of a specific product is known as which of the following?

A.An import quota

B.An export subsidy

C.A protective tariff

D.An excise tax

Ā 

2. Suppose there is a policy debate over whether the United States should impose trade restrictions on imported semiconductors:

A congresswoman from a state with several semiconductor factories explains that it is necessary to impose trade restrictions, such as a tariff, on the semiconductor industry to protect workers in the domestic semiconductor industry. The congresswoman claims that without trade protection, there will be layoffs, causing many U.S. workers in the semiconductor industry to be unemployed.

Which of the following justifications is the congresswoman using to argue for the trade restriction on semiconductors?

A.National-security argument

B.Unfair-competition argument

C.Saving-domestic-jobs argument

D.Using-protection-as-a-bargaining-chip argument

E.Infant-industry argument

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