Question
In: Economics
A country imposes a tariff on imports from abroad. How does this action change the long-run...
A country imposes a tariff on imports from abroad. How does this action change the long-run real exchange rate between the home and foreign currencies? How is the long-run nominal exchange rate affected? Will this import restriction necessarily improve the home country’s trade balance in the long-run? Explain carefully.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
____ 73. If a nation imposes a tariff on imports, a. part of the tax is...
____ 73. If a nation imposes a tariff on
imports,
a.
part of the tax is paid by foreign exporters.
b.
the entire tax is paid by foreign exporters.
c.
none of the tax is paid by foreign exporters.
d.
the tax has no impact on the profits of foreign exporters.
____ 74. Exchange rates determined by
the forces of demand and supply are called
a.
fixed exchange rates.
b.
floating exchange rates.
c.
equilibrium exchange rates.
d.
dirty exchange...
what is the impact of a tariff placed by the home country on its imports from...
what is the impact of a tariff placed by the home country on its
imports from abroad?
question 6 The United States imposes a tariff on foreign limes. How does the tariff affect...
question 6
The United States imposes a tariff on foreign limes. How does
the tariff affect the U.S. price of a lime and the production of
limes in the United States?
When the U.S. Government imposes a tariff on imports, 1. what happens to the price of...
When the U.S. Government imposes a tariff on imports,
1. what happens to the price of the imported good?
2. who pays the tariff?
3. who (which domestic businesses) gains from the tariff?
How?
4. how can American jobs be saved as the result of imposing
tariffs on American imports?
5. how can American jobs be lost as the result of
retaliation?
Your opinion: What would be your preferred trade policies?
Question (2) Consider a country that imports a good from abroad. For each of following statements,...
Question (2)
Consider a country that imports a good from abroad. For each of
following statements, say whether it is true or false. Explain your
answer.
“The greater the elasticity of demand, the greater the gains
from trade.”
“If demand is perfectly inelastic, there are no gains from
trade.”
“If demand is perfectly inelastic, consumers do not benefit
from trade.”
Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using...
Suppose Mexico imposes a tariff on imports. Import Prices
increase from Pw to Pt= Pw+t Using a graph explain the
following
A)What are the effects of imposing a tariff on Consumer
Surplus?
B)What is the effect of imposing a tariff on Producer
Surplus?
C)What is the effect of imposing a tariff on Government
Revenues?
D)What is the overall effect of the tariff?
E)Do you think imposing high tariffs is a good idea? Why?
Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using...
Suppose Mexico imposes a tariff on imports. Import Prices
increase from Pw to Pt= Pw+t Using
a graph explain the following
What are the effects of imposing a tariff on Consumer
Surplus?
What is the effect of imposing a tariff on Producer Surplus?
What is the effect of imposing a tariff on Government
Revenues?
What is the overall effect of the tariff?
Do you think imposing high tariffs is a good idea? Why?
Suppose that Country X subsidizes its exports and Country Y imposes a “countervailing” tariff that offsets...
Suppose that Country X subsidizes its exports and Country Y
imposes a “countervailing” tariff that offsets the subsidy’s
effect, so that in the end, relative prices in Country Y are
unchanged. What happens to the terms of trade? What about welfare
in the two countries? Suppose, on the other hand, that Country Y
retaliates with an export subsidy of its own. Contrast the
result.
Assume that country X subsidizes its exports and country Y imposes a countervailing tariff that offset...
Assume that country X subsidizes its exports and country Y
imposes a countervailing tariff that offset the subsidy. Explain
why the relative prices in country Y would be unchanged. Discuss
the welfare effects in the two countries. What would be the effect
if country Y retaliates with an export subsidy but without
countervailing tariffs on the product?
When a small country levies a tariff on imports, this causes the domestic price of the...
When a small country levies a tariff on imports, this causes the
domestic price of the imported good to ________, which is ________
to the foreign exporting country and ________ to the importing
country.
A) Rise; harmful; irrelevant
B) Fall; beneficial; harmful
C) Rise; beneficial; irrelevant
D) Rise; irrelevant; harmful
E) Rise; irrelevant; beneficial
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