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1. Less-developed nations sometimes argue that the industrialized nations' tariff structures discourage the less-developed nations from undergoing industrialization. How? ? 2. Distinguish between consumer surplus and producer surplus. How do these concepts relate to a country's economic welfare? ? 3. What factors influence the size of the revenue, protective, consumption, and redistributive effects of a tariff?? 4. In the past two decades, nontariff trade barriers have gained in importance as protectionist devices. What are the major nontariff trade barriers? ? 5. Which tends to result in a greater welfare loss for the home economy: (a) an import quota levied by the home government or (b) a voluntary export quota imposed by the foreign government? Explain your answer.? 6. Under the Tokyo Round of trade negotiations, what were the major policies adopted concerning nontariff trade barriers? What about the Uruguay Round?? 7. What is meant by the most-favored-nation clause, and how does it relate to the tariff policies of the United States?? 8. What is the purpose of economic sanctions? What problems do they pose for the nation initiating the sanctions? When are sanctions most successful in achieving their goals?
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