Elimination of the quota on rubber had on social welfare

Assignment Help Business Economics

Reference no: EM131204171

China's entry into the World Trade Organization (WTO) in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. This was particularly true in the market for rubber since, at the time, China was the world's second largest consumer of rubber (China is now the world's largest consumer of rubber). Shortly after joining the WTO, China eliminated its import quota on rubber. What impact do you think the import quota reduction likely had on the price of rubber and the quantity of rubber exchanged in China? What implications do you think the elimination of the quota on rubber had on China's social welfare? Post your response in 300 words.

Reference no: EM131204171

Questions Cloud

Why does this imply that the person is risk averse : In a state-contingent income space, each person's indifference curves are generally bowed in toward the origin. Why does this imply that the person is risk averse?

Great material continuum highlights : Identify which of the major themes of trade this passage about the Great Material Continuum highlights and explain how it works.

Likely affect an individuals demand for medical care : Identify at least four things that will likely affect an individual’s demand for medical care. Which will likely have the best ability to predict spending for a single individual? Which for groups of people (assuming that you do not know anything abo..

Terms of the appropriate parameters : Assume that both supply and demand increase. What condition must hold in order for us to be certain that the equilibrium price will increase as a result of this simultaneous shift? Be sure to state your answer in terms of the appropriate parameter..

Elimination of the quota on rubber had on social welfare : China's entry into the World Trade Organization (WTO) in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. This was particularly true in the market for rubber since, at th..

How is this value affect by an increase in t : What is the equilibrium value of n? How is this value affect by an increase in t?

What was the ratio for justice deanes decision : Introduction to Business Law (BUS101) - State three causes of action (ie, legal issues) which Mr and Mrs Amadio raised in challenging the mortgage guarantee they had signed?

Members of the strategic planning committee : Your organization's CEO is concerned that members of the strategic planning committee are not familiar with current economic thought and principles. The CEO has assigned you the task of developing an 875-word report to introduce some of these thou..

What possible issues can the use of multimedia present : What are your thoughts about various types of multimedia being used in the electronic courtroom? Do you believe it enhances a case or hinders? What possible issues can the use of multimedia present?

User Account

All Pages