Question

If it would be cheaper to give each steelworker $375,000 per year in cash rather than...

If it would be cheaper to give each steelworker $375,000 per year in cash rather than impose restrictions on steel imports, why do we have the import restrictions rather than the cash payments? Who gains and who loses from import restrictions? In answering, you should consider both consumers and producers in both the country that imposes the restrictions and the other countries affected by them.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We have import restrictions rather than the cash payments to protect domestic jobs from cheap labor abroad , to improve trade deficit as imports falls and net exports rises , to protect infant industries and to earn more revenue. From import restrictions consumer loses as prices is higher but after import restrictions domestic producer gain as people buy domestically produced good when imported good is expensive so that domestic producer gain. Producer in other country loses as they have to pay more on tarrif so there cost increases so they loses domestic government gain as they get more revenue on imported goods.

Please upvote if i'm able to help you it means a lot

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If it would be cheaper to give each steelworker $375,000 per year in cash rather than...
If it would be cheaper to give each steelworker $375,000 per year in cash rather than impose restrictions on steel imports, why do we have the import restrictions rather than the cash payments? Who gains and who loses from import restrictions? In answering, you should consider both consumers and producers in both the country that imposes the restrictions and the other countries affected by them
You are watching the nightly news. A political candidate being interviewed says, "I'm for free trade,...
You are watching the nightly news. A political candidate being interviewed says, "I'm for free trade, but it must be fair trade. If our foreign competitors will not raise their environmental regulations, reduce subsidiaries to their export industries, and lower tariffs on their imports of our goods, we should retaliate with tariffs and import quotas on their goods to show them that we wont be played for fools!" PART A. If a foreign country artificially lowers the cost of production...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount than we export. For this question, assume that the U.S. either imports completely or exports completely and that the trade balance reflects something fundamental about our resources and production costs relative to the rest of the world. Use a detailed diagram to show supply and demand in the market for computers in U.S. Label all areas in the graph in order to answer the...
If a tariff in a small country reduces consumer surplus by $100, increases tariff revenue by...
If a tariff in a small country reduces consumer surplus by $100, increases tariff revenue by $50, and increases producer surplus by $20, then which of the following is incorrect? a. National welfare falls by $30. b. National welfare falls by $50. c. Deadweight loss is $30. d. The protection cost is $30. If a tariff of $10 per unit reduces the world price by $4, then a. The nation imposing the tariff must be a small nation. b. Domestic...
QUESTION 31 A benefit of being in a customs union is,   a. a customs union tends...
QUESTION 31 A benefit of being in a customs union is,   a. a customs union tends to have more bargaining power in trade agreements than a country has by itself b. a customs union can accelerate the speed of technical advance c. both A and B d. neither A nor B 3 points    QUESTION 32 Which of the following is true regarding trade protectionism? a. intraindustry trade tends to cause more protectionist pressure than interindustry trade b. particular industries...
Consider two countries J and K. Both of them have equal amount of gross domestic product...
Consider two countries J and K. Both of them have equal amount of gross domestic product (GDP) measured in USA dollars. If the cost of living is cheaper in country K than in country J, which country do you think has a larger GDP in Purchasing Power Parity (PPP) measured in international dollars? a) It is difficult to know this b) Both have still equal GDP PPP c) Country J d) Country K When we say ‘Trade is pro-competition’, what...
1) for a high tax society the disposable income of people will decline and so will...
1) for a high tax society the disposable income of people will decline and so will be there saving and investment, in this kind of a society the government expenditure will crowed out the private investment as the rate of interest will be high. in this society the poor people will be benefited the most from the public expenditure but the richer class will be burdened. in case of a low tax society the disposable income f people will be...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in terms of the means of collection in terms of the different tariff rates applied in terms of special purposes for collection 2. The effects of import tariffs concepts of consumers surplus and producers surplus the welfare effects of import tariffs 3. Measurement of import tariffs the "height" of import tariffs nominal versus effective tariff rates II. Chapter Summary 1. The means of collecting import...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including Nissan, Honda, Volkswagen, and Mazda, vehicle production doubled between 2009 and 2014 to an estimated 3.2 million vehicles. This investment surge has transformed Mexico into the eighth-largest automaker in the world, and it’s not over yet. In 2014 and 2015, Toyota, Mercedes-Benz, Hyundai-Kia, BMW, and Volkswagen all outlined plans to build new state-of-the-art factories in Mexico. Audi is also constructing a $1.3 billion factory...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including...
Mexico’s automobile industry is booming. Bolstered by $19 billion in new investment from foreign carmakers, including Nissan, Honda, Volkswagen, and Mazda, vehicle production doubled between 2009 and 2014 to an estimated 3.2 million vehicles. This investment surge has transformed Mexico into the eighth-largest automaker in the world, and it’s not over yet. In 2014 and 2015, Toyota, Mercedes-Benz, Hyundai-Kia, BMW, and Volkswagen all outlined plans to build new state-of-the-art factories in Mexico. Audi is also constructing a $1.3 billion factory...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT