instead of legislation banning the imports, assume that the government enacts a
ID: 1253902 • Letter: I
Question
instead of legislation banning the imports, assume that the government enacts a special tax on imported clothing that is so high that the selling price of the imports would be equal to the selling price of the same clothing made in America. This kind of tax is called a tariff and is enacted to protect domestic producers of the same items that can be imported at much lower costs. Answer the following:a. What would shoppers see when they shopped in Wal-Mart and the other “big box” stores that sell so many imported items?
b. Would this tax policy have a better effect, worse effect, or no different effect on American workers than the legislation banning the imports discussed in question 1? What kind of effect would the tax have on the Asian workers
Explanation / Answer
a. shoppers would see products made in low labor cost countries like mexico and china being sold at the same rate as American products.thus will have lower quality. b. For Americans, both the laws will have almost the same effect..banning would obviously be slightly better, as in the other case u might get better variety. For ASIANs, Banning would incur them a huge loss and with these new import duty also they will be losing jobs.. PLEASE RATE
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