Explain why Advanced Economies, like
the U.S., favor
greater Free Trade & why
Developing Economies, like...
Explain whyAdvanced Economies, like
the U.S.,favor
greater Free Trade& whyDeveloping Economies, like China,wish to maintain higher tariffs and
control of imports.
Explain why global free trade maximizes the welfare of the
world. Consider two economies of comparable sizes. Explain why each
of them has an incentive to restrict trade. What is the Nash
equilibrium if both of the countries choose an optimal tariff,
assuming that the other country does not retaliate? Use this
example to explain the meaning of the Prisoners’ Dilemma. What can
the World Trade Organization do to help improve the welfare of the
world (and the countries)?
Which trade theory can we explain developed economies
like Uk, Germany by new trade theory or neoclassical trade theory?
how about developing economies like Bangladesh?
Trade barriers are used by developed and developing countries as
a mechanism to protect their economies. Explain at least two types
of trade barriers that apply to developed and developing countries?
What are some of the advantages and disadvantages of trade
barriers? Which of the barriers you mentioned are more effective
for developing and developed countries and why? (100 words
minimum)
International Trade
How would you respond someone who is arguing in favor of greater
protection of domestic industries against free international trade?
Write a short essay (no longer than 4 pharagraphs) .Justify your
arguments with a trade model of your choice. (It can be the
Ricardian Model or the Hecksher Ohlin Model) You can also include
graphs.
Please explain carefully.