Explain the welfare effects of export subsidies

Assignment Help Macroeconomics

Reference no: EM133929030

Question 1

Both the Ricardian model and the Heckscher-Ohlin model offer explanations for a country's trade pattern. Compare and contrast these two models by outlining their core assumptions, foundation for comparative advantage, and key differences. Additionally, use real word example to illustrate.

Question 2

"Trade and economic integration improve industry performance as much as the discovery of a better technology does." Discuss this statement with reference to economies of scale within the context of monopolistic competition. In your answer, consider the mechanisms through which trade and integration influence the industry performance.

The gravity model of trade intuitively predicts that the volume of trade between two countries is directly related to the size of their economies-commonly measured by GDP-and inversely related to the geographic distance between them, which serves as a proxy for trade costs. Explain the economic rationale behind this relationship. Additionally, discuss alternative variables that can be used to represent the size of countries and the costs associated with trade. Get expert online assignment help in the USA.

Question 3
Preferential trading agreements violate the "most favored nation" (MFN) principle. Identify the forms of regional integration that explain the exceptions from the MFN rule and explain the reasoning behind allowing them under WTO rules. In addition, describe the main differences between the them and support your answer with real-world examples of each.

A recent research paper by the International Monetary Fund (IMF) highlights that, agricultural and food subsidies, as a proportion of global GDP, are generally increasing in emerging market economies (EMEs). As discussed in Lecture 9, such subsidies tend to reduce overall national welfare in the countries that implement them.

Required:
Illustrate and explain the welfare effects of export subsidies using a relevant diagram learnt in the Holmes syllabus. Additionally, analyse the possible reasons why EMEs are increasingly relying on agricultural export subsidies.

Question 4
The Labor government, as reported by The Australian, anticipates a notable drop in net overseas migration to 225,000 by 2025. This decline is attributed to reduced inflows of new migrants and the departure of temporary visa holders who contributed to the post-pandemic population surge. It is expected that, this policy will significantly impact sectors that depend heavily on migrant labour, such as hospitality and agriculture.

Required:
Analyse the potential effects of this decline in migration on the hospitality labour market and assess its broader implications for the Australian economy. In your response, use the figure below and apply the concept of the marginal product of labour to support your explanation. Assume Country M is Australia and Country Y is the rest of the world.

Question 5
The Trump administration's tariff reforms have led to elevated import duties on goods from several trade partners. Suppose the United States increases tariff on Australian beef exports, evaluate how such protectionist policy may affect the economy of the U.S. Support your discussion with a relevant graph learnt in this unit.

In addition, consider the likely economic responses from U.S. trade partners (i.e., Australia) as a reaction to the revised tariff policy.

Reference no: EM133929030

Questions Cloud

What diagnosis might be appropriate for salman : Sometimes he cannot get an erection at all, even with his partner attempting manual or oral stimulation. What diagnosis might be appropriate for Salman?

Create first time therapy session including informed consent : Create first time therapy session, including informed consent, for 6 year-old male diagnosed with adjustment disorder with mixed disturbance of emotions.

Identify two key patterns of cultural difference : Explain why communication often breaks down in cross-cultural interactions. What role does cultural background play in how messages are sent and received

How nature reflects enduring impact of grief and trauma : How nature reflects enduring impact of grief and trauma revealing how an individual's grief distorts familial relationships and shapes experiences of the world?

Explain the welfare effects of export subsidies : Explain the economic rationale behind this relationship. Additionally, discuss alternative variables that can be used to represent the size of countries

What is not clear about b-two-b that you hope to learn : How this has changed after first week of class what did you learn, what surprised you or what remained same? What is not clear about B2B that you hope to learn?

Describe intervention or treatment tool : Describe the intervention or treatment tool and the specific patient population.

Prepare a structured analysis of the data set : SCIE4401 Data Use in Science, University of Western Australia - Prepare a structured analysis of the data set. Report coefficient estimates, standard errors

How do these competencies influence your communication skill : How do these competencies influence your communication skills, and how can enhancing them contribute to your effectiveness in professional environments?

User Account

All Pages