Question

6. Throughout the ages countries have implemented impediments to trade. a. What is a tariff? b. Why would the U.S. impose steep tariffs on Chinese solar panels? i. Explain how this would work to accomplish the U.S. objective. c. Given the current trade war with China and other nations, please explain which industries are being hurt by higher tariffs against America, and explain how the customers of those industries are being impacted. Please provide thorough explanations. d. What is an import quota? e. Identify 3 cases where the U.S. has imposed import quotas on another country and explain why they were implemented i. Google can help you. f. What are non-tariff barriers (don’t use embargos or import quotas)? g. Identify 3 examples of non-tariff barriers imposed by the U.S., why they were implemented, and their impact on the U.S. and other countries. i. Google can help you. i. What could happen to the domestic economy of a country when trade barriers are eliminated and why? ii. Explain what would happen to GDP, employment, and national income, and why.

Answer 1

Ans) A tariff is a sort of a which is levied on a goods which are imported into a country. Tariffs are intended to make imported goods more expensive and thus less competitive with domestic products. It is basically a way to provide protection to the domestic industries.

On Jan 22, 2018, 30% tariff was levied on importing of solar panels. It was levied as a "global safeguard" action, to provide protection to U.S. producer Solar World, which is based in Germany and Suniva, and owned and controlled by China's Shunfeng International Clean Energy Ltd.

Due to trade wars, fluctuation In the prices was seen, which had a negative impact on the economy, as well as discouraging the industrialists and consumers. Consumer market was highly affected, and negative signs on employment was seen.

On the other hand, import quota is a type of a restriction, in order control the physical limit of the quantity of a good that is to be imported in a country.