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

Bank failure may not be limited to banks, Q. "Bank failure may not be limit...

Q. "Bank failure may not be limited to banks that have mismanaged their assets." Explain why. Answer: A sound bank countenanced with the wholesale loss of deposits is likely to

What do you think about dollarization, Q. What do you think about dol...

Q. What do you think about dollarization? Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage a

Differences in social support networks and satisfaction, A vast body of lit...

A vast body of literature has been dedicated to the study of social support and satisfaction.  Social support is commonly viewed as one of the most important concepts of close pers

Why under fixed exchange rate is ineffective, Q. Explain why under fixed ex...

Q. Explain why under fixed exchange rate, monetary policy is ineffective whereas under floating exchange rate it is effective in rising output. Answer:  In floating by purchasi

Interest rate differential according to the ppp theory, Q. Describe and exp...

Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p

Demands for compliance, The Emergence of the Modern Information Regulatory ...

The Emergence of the Modern Information Regulatory Environment: Task 1 Given the perceived long-standing benefits of latent information policy formulation in the United S

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