Explain why export subsidy is more costly in the given case

Assignment Help Macroeconomics

Reference no: EM131917631

Problem

1. Why might a large country like the United States have a greater incentive than a small country to use trade restrictions?

2. Using a general equilibrium approach, point out the real income loss from a tariff to a country. What is the consumer welfare loss? Why might consumers prefer a production subsidy rather than a tariff?

3. Explain why an export subsidy is more costly in the case of a large country than in the case of a small country, other things being equal.

Reference no: EM131917631

Questions Cloud

When the demand curve becomes more elastic : Will the loss in home consumer surplus become greater or less, for a given tariff amount, when the demand curve becomes more elastic?

Explain the nature of the dilemma : In theory, corrective advertising represents a potentially valuable device for regulating deceptive advertising. In practice, however, corrective advertising.

Characteristics of the environmentally concerned consumer : Some consumers are more concerned about the physical environment than others. Provide a specific profile of what in your opinion would be the socioeconomic.

Estimate the welfare impacts that would occur : Estimate the welfare impacts that would occur with such a tariff, given that the elasticity of demand by consumers for good X is 2 2.0.

Explain why export subsidy is more costly in the given case : Explain why an export subsidy is more costly in the case of a large country than in the case of a small country, other things being equal.

Discuss competitive advantage of marketing organizations : Offer your views on the following statement: "the basic reason for IMC is that marcom is the only sustainable competitive advantage of marketing organizations."

What are some examples of providing choices : Question to Answer: What are some examples of providing choices and environments that promote an internal locus of control for older adults?

What is difference between an export tax and export subsidy : What is the difference between an export tax and an export subsidy? Which instrument are domestic consumers likely to prefer? Why?

Describe the probable outcome of practicing nonintegrated : Given your understanding of IMC and its fundamental characteristics, describe the probable outcome of practicing nonintegrated, rather than integrated.

User Account

All Pages