International Trade* On the Iron Range in Northern Minnesota, about 2,000 miners

Question

International Trade* On the Iron Range in Northern Minnesota, about 2,000 miners have been laid off over the last couple years. These miners worked in taconite mines. Taconite is used to make steel. Currently the world has an excess of steel capacity due primarily to the slowdown in the Chinese economy. As China has shifted away from building more industry and focused more on building a consumer economy, their need for steel has dropped dramatically. As a result, the demand for taconite and iron ore has also dropped. With the drop in demand, miners are laid off. The miners have been aggressively pushing the national legislators from Minnesota to increase tariffs on imported steel and set import quotas.

If the tariffs and the quotas were passed into law, who would be helped? Explain

Explanation / Answer

Import tariff can only increase the price of imported steel. High people income can easily purchase the imported steel at high prices but import quotas on imported steel restrict the people to purchase the imported steel.so people have to buy their own country i.e minnesto steel product. So in this case import quota will be very useful for minnesota.

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