Chapter 21: Problem 49
Why do you think that the GATT rounds and, more recently, WTO negotiations have become longer and more difficult to resolve?
Chapter 21: Problem 49
Why do you think that the GATT rounds and, more recently, WTO negotiations have become longer and more difficult to resolve?
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Get started for freeWhy might a tax on domestic consumption of resources critical for national security be a more efficient approach than barriers to imports?
How does protectionism affect the price of the protected good in the domestic market?
Microeconomic theory argues that it is economically rationale (and profitable) to sell additional output as long as the price covers the variable costs of production. How is this relevant to the determination of whether dumping has occurred?
Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?
Why might the unsafe consumer products argument be a more effective strategy (from the perspective of the importing country) than using tariffs or quotas to restrict imports?
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