Question

Explain the effects of a tariff and a quota placed on imported automobiles on a domestic...

Explain the effects of a tariff and a quota placed on imported automobiles on a domestic market. Who is hurt with the tariff or a quota and why? Who benefits and why?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If the Tariff and a quota placed on imported automobiles then the price of the imported automobiles increases and due to the price is increases then the demand is decreases so quantity of imported automobiles decreases which means imported decreases

So when imports decreases then the trade deficit decreases.

The exported country will hurt when the tariff and a quota placed because due to impose a tariff price is increases and so demand is decreases and so export will decreases.

Domestic company may get benefits because due to tariff the import will decreases and so the people purchase from the domestic market and so demand of the domestic company increases.

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
using welfare analysis show the effects of a tariff placed on a good imported into a...
using welfare analysis show the effects of a tariff placed on a good imported into a small country
Suppose that the U.S. government imposes quota on cheese imported form Europe . Who would likely...
Suppose that the U.S. government imposes quota on cheese imported form Europe . Who would likely be helped and hurt? What is NAFTA, and what have been its effects to date? 50 words Why are some economists concerned that the United States borrows too much from abroad?
QUESTION 29 A lower tariff on imported cars would most likely hurt: Foreign producers at the...
QUESTION 29 A lower tariff on imported cars would most likely hurt: Foreign producers at the expense of domestic consumers Domestic manufacturers of cars. Domestic consumers of cars Workers in the domestic car industry QUESTION 30 An export tariff is when a country requires that only a specific amount of a good (say, 50,000 units) be exported. is not used by the American government. is an example of specific tariff. may hurt consumers in the country that imposes the export...
The effect of imposing a tariff on a specific imported good is to ________ the domestic...
The effect of imposing a tariff on a specific imported good is to ________ the domestic price of the good and ________ the domestic production of the good. Select one: a. increase; increase b. decrease; increase c. decrease; decrease d. decrease; to leave unaffected.
Suppose the Australian government imposes a tariff on imported wooden tables. a) Who benefits and who...
Suppose the Australian government imposes a tariff on imported wooden tables. a) Who benefits and who loses from this policy? b) Are the overall benefits or costs of the tariff greater? Explain your answer
Use the table to match each definition to the term. Definition Terms Tariff Quota Dumping A...
Use the table to match each definition to the term. Definition Terms Tariff Quota Dumping A tax on goods imported into a country A legal limit on the amount of a good that can be imported into a country Exporting goods whose domestic production has been heavily subsidized by the government
Explain why a quota is more detrimental to an economy than a tariff that results in...
Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota. What is the net outcome of either tariffs or quota for the world economy?
Suppose that the U.S. government increases the tariff on imported steel and aluminum. Will this affect...
Suppose that the U.S. government increases the tariff on imported steel and aluminum. Will this affect the supply or the demand for new automobiles? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of new automobiles manufactured in the U.S. in general? Explain your reasoning.
Explain intuitively why a quota that is competitively auctioned produces a similar outcome as a tariff...
Explain intuitively why a quota that is competitively auctioned produces a similar outcome as a tariff whose effect reduces imports to the same number of units as the quota. Distinguish between a VER and a quota with auctioned licenses
Suppose that the nominal tariff rate on an imported final product is 0.15, while the ratio...
Suppose that the nominal tariff rate on an imported final product is 0.15, while the ratio of the value of imported input to the value of the finished product is 0.65, and the nominal tariff rate on the imported input is 0.025. calculate the effective rate of protection now assuming government increases the nominal tariff rate on the imported input to 0.11, calculate the new effective rate of protection. assuming you are the lead Economist of a Trade Policy Team...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT