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

The wage rate, Q. Suppose the relative price of good 1 falls relative to th...

Q. Suppose the relative price of good 1 falls relative to the price of.  What happens to the wage rate? Answer: The labour component of the price of 1 is bigger than that of p

External economic environment on the project, The external economic environ...

The external economic environment could have implications for the project in various areas. There is no tax in Saudi Arabia; this is a significant political effect on the projec

Delay line, what is delay line in cro?

what is delay line in cro?

Wto, economic theories to explain free traden..

economic theories to explain free traden..

Apparent lack of national consistency on this issue, Q. The United States ...

Q. The United States seems at times to have a totally schizophrenic attitude toward protectionism. The United States was the country that proposed the establishment of the World

International trade, why is international trade important for south africa

why is international trade important for south africa

Trams of trade, different between her barter terms of trade and net barter ...

different between her barter terms of trade and net barter terms of trade

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