Question

Sugar Policy

1.    If the U.S. abandoned its sugar policy, what would be the effect on:
A.    Sugar industry (World)
B.    Who would benefit
C.    Who would lose


2.    Why are U.S. Trade Policies toughest on the Poor?

3.    Why does the U.S. Protect the American sugar industry?

4.    Using your knowledge of comparative advantage, describe what actions you would take on the sugar policy? Would you remove tariffs quotas or keep the policies? Explain argumentatively

5.    If free trade was allowed in the sugar industry, explain the effects on the underdeveloped countries that could now export sugar. (Hint…use words like GDP, productivity, standard of living, infrastructure and capital investment)

6.    Why are sugar refineries in the U.S. not making efforts to refine sugar more efficiently and environmentally friendly?

Answer 1

Answer.

1) a) Sugar industry (World)

The Sugar industry in the world would find scarcity in sugar products. The biggest supplier go sugar is USA. The abandon of policy would increase the cost of sugar in the world.

(b) Who would benefit

The suppliers from other parts of the countries would benefit from this abandonment go sugar from the US. It would increase the revenues of their business.

(c)Who would lose

The lose would be taken by US due to cancellation of sugar policy.

(2) U.S. Trade Policies toughest on the Poor

The trade policies is toughest on poor because it is going to be costly for them. The policies demand more cost of dealership. The poor are the countries away from US who demands sugar in large quantity. The categories of poor includes those who have earning below the poverty line. The other category of poor is lowest producers of sugar.

(3) U.S. Protect the American sugar industry

The US Protect the American sugar industry so that there is more revenues earned by the dealers and suppliers of sugar.

(4)The actions taken on sugar policy as per comparative advantage is that the price of the product decreases which increases the supply of the product. The tariff quotas should be removed in order to increase the demands of the sugar

(5) If free trade was allowed in the sugar industry, then the effects on the underdeveloped countries could export sugar. The demands would increase in the market. The cost of production would be covered up by the revenues earned by the firm.

(6) The reason for inefficient production and environment stability is because of improper management of the sugar industry. It is turning to be expensive for the producers of sugar mills to conduct the business.