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In an effort to encourage free trade, imagine that the members of the World Trade Organization agreed to dismantle all tariff protection of domestic industries in their respective countries.
Do you think that such a commitment will necessarily result in freer trade? Are there alternative means by which these nations can support their domestic industries that have the same effects as tariffs? Are there alternative means of supporting local industries that have lower efficiency cost than tariffs? Why do you think that a government might choose to protect its industry using a tariff rather than simply offering a production subsidy?
As an international economist you have been tasked to make a short speech which answers the given questions:
Sydney is wants to start a new business, but would have to give up a job with a total compensation of $100,000 every year. After researching the new business opportunity, Syndey created following estimates.
If the European euro were to depreciate relative to the United State dollar in the foreign exchange market, would it be easier of harder for the French to sell their wine in the U.S.?
Proponents of the rebate-for-all assert that more of lower- and middle-income households should be included in any rebate plan because they are more likely to spend a bigger chunk of their rebate than higher-income households
Given an hour of production, Norway can manufacture ten cars and twenty trucks and Costa Rica can manufacture five cars and fifteen trucks.
"Importing more goods and services into the U.S. is always a good thing to do economically." Explain why you agree or disagree. Is it possible for one country to profit more off trade than another country Should we have a stronger dollar or a weak..
If the European slump also leads to a slowdown of the other economies that import goods from the United States, the effect could be larger. Assume that US exports decrease by 5% (as a result of changes in foreign output) in one year. What is the ..
What countries would you choose to export and what problems do you see, and why do they trouble you?
compute the equilibrium price and quantity when the per-ton price of scrap steel was $156, and the equilibrium price-quantity combination when the price of scrap steel reached $302 per ton. Suppose the cost function of a representative minimill pr..
Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision?
Suppose that France and Denmark both produce oil and olives. Frances's opportunity cost of producing a crate of olives is 4 barrels of oil, while Denmark's opportunity cost of producing a crate of olives is 7 barrels of oil.
Assume Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, market for four wheel drive tractors consisted of 5-company's.
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