International Trade
1. Draw a demand and supply diagram showing the use of a tariff
by a large country to improve its national welfare. That is, you
must clearly, obviously and unambiguously draw
your diagram so that the country has a higher level of welfare with
the tariff rather than free trade. Carefully explain your diagram.
2 .Explain why the result you have shown in Question 1 is, in
practice, not a convincing argument for protectionism.
3. In no more...