Which of these two policies would be less damaging

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Reference no: EM131174359

To protect American jobs, the U.S. government may decide to cut U.S. imports of bulldozers by 60 percent. It could do so by either (a) imposing a tariff high enough to cut bulldozer imports by 60 percent or (b) by persuading Komatsu and other foreign bulldozer makers to set up a VER arrangement to cut their exports of bulldozers to the U.S. by 60 percent. Which of these two policies would be less damaging to the U.S.? Which would be less damaging to the world as a whole?

Reference no: EM131174359

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