Upon graduation you get a job as the economic advisor to the United Nations. You
ID: 1155233 • Letter: U
Question
Upon graduation you get a job as the economic advisor to the United Nations. Your first task is to advise them on how to punish a rogue nation which has violated several U.N. peace treaties. Your bosses know that they want the punishment to be in the form of trade restrictions by either putting a tariff on imports into the country (imposed and collected by the U.N., not the country in question) or putting a quota on imports into the country. Your job is to explain to them the consequences of imposing such trade restrictions, tell them what type of trade restriction they should impose and explain to them why, in your opinion, this would be the optimal punishment. Use our model of international trade to illustrate your answer including the impact that this policy has on the country’s: consumer surplus, producer surplus, total economic surplus, deadweight loss, and any other measures of welfare you deem appropriate.
Explanation / Answer
Inspite of the strong rhetorical case that can be made for free international trade, every country in the world erected at least some butties to trade.
A protectionist policy is one in which a country restricts the importation of goods and services
In 2008 US produced new protectionist sentiment one that became a factor in the 2008 US president compaign .
Restrictions of trade imports.
1.Tarrifs
A tarrif is a tax on imported goods and services , the average tax on dutiable imports in the united states is about 4percent and highly on 48 percent. With out payment of tarrif imported goods are legally banned and case filed against that.
2.Antidumping proceedings
A domestic firm faced competition with a foreign competitor, files charges it's government that the foreign firm is dumping. Or charging an unfair price.
3)Quotas
A quota is a direct restriction on the total quantity of good and services that may imported during. Specific period. Price increase as same as imposed.
4)Voluntary export restrictions
A Form of trade barriers which foreign firms agrees to limit the wuantqua of goods exported to a particular country. It is from 1980.
Other butties
a. Labeling requirements
b. Pollotion controls.
c. Quality restrictions.
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