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Trade interventions can restrict or promote trade.
1. Suppose the home economy is large in at least some export and some import markets. Explain why trade restrictions on the export side or the import side will improve a large country's terms of trade. Why do we not observe export tariffs as frequently as import tariffs?
2. In multilateral trade negotiations, it is important to compute the restrictiveness of quantitative non-tariff measures such as quotes in terms of their ad-valorem tariff equivalents. Explain how such as number can be computed using a partial-equilibrium approach.
3. Explain why an export subsidy worsens a country's terms of trade. Under what conditions may export promotion, such as East Asian economies used to pursue it, be preferable to import protection, such as other developing economies used to pursue it under Import Substitution Industrialization?
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