Model of industry protection of grossman and helpman, Public Economics

Consider the model of industry protection of Grossman and Helpman. There are two industries A and B, each producing good X and Y respectively. All other things being equal, the demand for good X is inelastic while the demand for good Y is elastic (or more simply, the demand for good Y is more elastic than the demand for good X). The country where these two industries are located is considering to open up its border to foreign companies that will bring competition and reduce the domestic prices of goods X and Y. In this context, and using the G-H model, explain which industry will seek protection against international competition and why. Do not write more than two paragraphs.

Posted Date: 2/23/2013 8:21:29 AM | Location : United States







Related Discussions:- Model of industry protection of grossman and helpman, Assignment Help, Ask Question on Model of industry protection of grossman and helpman, Get Answer, Expert's Help, Model of industry protection of grossman and helpman Discussions

Write discussion on Model of industry protection of grossman and helpman
Your posts are moderated
Related Questions
3 voters, A, B, and C, will decide by majority rule whether to pass bills on issues X and Y. Every of the two issues will be voted on indiviually. The change in net profits (in dol

Discuss whether high indirect taxes are the best way to discourage smoking.

Jenna's boss has decided to pay her a one-time bonus of $5,000. She decides to save the money until she retires, 4 years from now. She contemplates two savings options. Option A is

Market theory is expected to apply to factor markets in a similar way to its application to product markets. However, there is extensive evidence in the Mauritian economy to sugges

Question 1 Legislature, most commonly known by the name parliament, forms the first important organ of a political organization and to hold this position it performs certain func

Part I. We have examined federal public policies in the context of the democratic political system in the US.     Types of policy legislation/behavior fall into 3 main types. A

Public Economics can broadly be understood as that Economics which deals withpublic intervention in the economy. Its domain is supposed to encompass rationalefor public interventio

Question: You are the Head of the Public Relations Department of an airline company. Your Chief Executive has asked you to make a presentation on crisis management to senior s


Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4