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The US International Trade Commission's committee in charge of the global safeguard investigation involving imports of steel has announced its recommendations to be forwarded to the president. Of the 33 steel product categories investigated, 12 have experienced a significant increase in the quantity of imported steel, causing serious injury or the threat of serious injury to the US steel industry. The commission has recommended that the president impose a 20 percent tariff on these 12 categories of imported steel. If the president follows the commission's recommendations, what will happen to the supply of foreign steel in these categories? What impact will this have on the equilibrium quantity of steel sold (in these categories) in the United States? Will the equilibrium price for these categories of steel in the United States market increase or decrease? Explain.
What would be the relative supply of Cars in the world market, if both NZ and UK were to produce these two goods on the basis of their comparative advantage in production?
Discuss how does Heckscher-Ohlin theory differ from Ricardian theory in describing international trade patterns? The theory shows how trade affects distribution of income within trading partners.
The United State imports Japanese cars with a domestic price of 5,000,000 yen and the yen or dollar exchange rate is 120 on January 1, 2003.
Based on your reading, which market structure is more applicable for the market for building commercial aircrafts, when there are two major manufacturers of the commercial airplanes and little possibility of entry by new firms:
in the UK in a pound denominated security with a fixed rate of return, say, 5%. Because your investment is denominated in the British pound you are interested in knowing how certain future economic developments my affect the dollar/pound exchange ..
Over the course of the past year, the price of internet services has risen to $4, but the price of books has remained the same. The government has decided provide this student with additional money to compensate for the higher price of internet ser..
Assume that the production technology of a self proclaimed infant industry allows economies of scale. Assume also that the same technology is available to foreign manufactures.
In 2006 the hourly cost to workers per German industrial employee was $33. The hourly expense to employers per United States industrial employee was $23.65 while the average cost per Taiwanese industrial worker was $6.38.
Suppose if you were President of the United States and you were making decisions on trading, would you rather have a comparative or absolute advantage in trading?
In response to what seemed to be a flood of illegal aliens, Congress made it a federal offense to employ illegals and strenuous, effective efforts are made to export them. How will these measures affect the U.S. production possibilities frontier
In 1981, the United State negotiated a contract with the Japanese. The contract called for Japanese auto firms to limit exports to the United State.
In the mid-1990s and through the early 2000s, Japan's annual money supply growth rate fell to 1-2 percent from an average annual rate of 10-11 percent in the late 1980s. What effect did this decline have on: a. Japanese real output.
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