Example of zero-tariff free trade policies, International Economics

Assignment Help:

Q. Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country. It follows thus that when any legislator or government official who promotes zero-tariff free trade policies, is by definition not operating in the public's best interest. Discuss.

Answer: Theoretically this is true and conversely this is true only within the context of a usually myopic view of international relations. If the tariff impressive country is large enough to make a substantial difference in its welfare by seeking an optimum tariff subsequently it can't hope to remain invisible as its policies are substantially harming its trade partners. Foreign repercussions are nearly a certainty. In such a "game" it isn't at all certain that seeking the optimal tariff dominates alternative strategies.


Related Discussions:- Example of zero-tariff free trade policies

Case study of savings and loans association, Argus Savings and Loan Associa...

Argus Savings and Loan Association began in 1956 in Hometown. As is typical of savings and loan associations, Argus accepts the savings of individuals and organisations and uses th

Why is the u.s. dollar considered a vehicle currency, Q. Explain what a "v...

Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency? Answer: A vehicle currency is one specifically widely used to denominate inter

Immediate demand and cost pressures, Q. "Although the price levels appear t...

Q. "Although the price levels appear to display short-run stickiness in many countries, a change in the money supply creates immediate demand and cost pressures that eventually lea

Explain the specific objectives of fiscal incentives, Question: (a) ...

Question: (a) Illustrate the differences between inter and intra industry trade. (b) Foreign Investors generally tend to adopt a two-stage process when evaluating count

Free trade, what are the limitations of net barter terms of trade

what are the limitations of net barter terms of trade

Survivor island, Identify and explain the three basic economic question tha...

Identify and explain the three basic economic question that the group of survivors will have to answer everyday

Postwar worlds key currency, Q. Explain why the dollar of the United ...

Q. Explain why the dollar of the United States became the postwar world's key currency. Answer: 1. The untimely convertibility of the U.S dollar in 1945. 2.

Impact of the project on the external economic environment, Impact of the P...

Impact of the Project on the External Economic Environment International Medical Center will significantly affect the external economic environment in different aspects: • Th

Assignment help, hi can you help me do my assignment?

hi can you help me do my assignment?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd