Question

In: Economics

Explain the import quota policy in a small nation, using appropriate theories and diagrams. Why WTO...

Explain the import quota policy in a small nation, using appropriate theories and diagrams.

Why WTO substantially limits the legal usage of Import quotas.

Solutions

Expert Solution

Import quotas are not preferred by the WTO because they are more welfare reducing than tariffs. This includes red-tape and other bureaucratic failure such as unnecessary lobbying and accusations of unfair play by the importing country government.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Explain the two theories which explain fluctuations in unemployment, with appropriate diagrams.
Explain the two theories which explain fluctuations in unemployment, with appropriate diagrams.
Small country quota Suppose Canada places a quota on the import of steel, which reduces its...
Small country quota Suppose Canada places a quota on the import of steel, which reduces its steel imports, but does not stop them completely. a) Draw a diagram to illustrate the change in Canada’s steel market, moving from free trade to the quota. b) Based on your diagram, compare Canada’s welfare if it distributes the quota by auction with Canadian welfare if the quote is distributed by a VER.
Small country quota Suppose Canada places a quota on the import of steel, which reduces its...
Small country quota Suppose Canada places a quota on the import of steel, which reduces its steel imports but does not stop them completely. a) Draw a diagram to illustrate the change in Canada’s steel market, moving from free trade to the quota. b) Based on your diagram, compare Canada’s welfare if it distributes the quota by auction with Canadian welfare if the quote is distributed by a VER.
Explain the cost of "rent seeking" associated with import quota.
Explain the cost of "rent seeking" associated with import quota.
What is import quota? Why do some governments use it instead of just using tariff to...
What is import quota? Why do some governments use it instead of just using tariff to restrict imports by the same amounts? Is it because quota brings a bigger national gain than tariff?
Q3. Which is a more restrictive trade barrier—an import tariff or an equivalent import quota? Why...
Q3. Which is a more restrictive trade barrier—an import tariff or an equivalent import quota? Why did the U.S. government in 1982 provide import quotas as an aid to domestic sugar producers?
Do you believe that monetary policy should be activist or nonactivist? Why? Explain using diagrams and/or...
Do you believe that monetary policy should be activist or nonactivist? Why? Explain using diagrams and/or examples
A) Why US is having an import quota of sugar and what is its impact on...
A) Why US is having an import quota of sugar and what is its impact on US domestic production? B) What is the impact of an import quota on the sugar price in US and why consumers are not opposing this?           Explain in detail.  
a. economic union f. GATT b. non-tariff barriers g. import quota c. anti-dumping laws h. WTO...
a. economic union f. GATT b. non-tariff barriers g. import quota c. anti-dumping laws h. WTO d. free trade agreement i. protectionism e. race to the bottom j. dumping ( H ) An organization formed after WWII to help set rules for international trade and to reduce trade barriers. ( F   ) A trade agreement aimed to reduce trade barriers between countries. (    ) They are responsible for monitoring and enforcing multilateral trade agreements among 133 countries. (    ) Attempts...
a. Using appropriate demand and supply diagrams in each of the following cases explain the impact...
a. Using appropriate demand and supply diagrams in each of the following cases explain the impact on the market price and quantity traded. i. Market for second-hand clothing following a high increase on import duties on second- hand clothes ii. The market for tomatoes following a bumper harvest iii. The market for Sanwatt battery following a fall in price of Tiger head battery b. Define market as applied in economics and explain briefly any four types of markets.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT