Question

Describe tariff quota and subsidies how are they involved in global trade disputes? Give an example of how one term could be involved in a trade dispute.

Answer 1

Tariff quote indeed have a lot of impact on the people opting as these tariffs can get to cause huge amount of demand decrease with which the global trade policies can be disturbed. Similarly if the local products are subsidized, then it can be mentioned that the imports and exports and finally the global trade gets to decease which is something not a good sign on the whole.

For example - A phone on US if about$1000 and a phone from China is $800 and if tariff on China phone is $200 and subsidy on American phone is $100, then trade changes a lot as US phone costs $900 and China phone costs $1000