Question

How will an increase in import tariff affect the domestic country and the foreign country. Analyze

How will an increase in import tariff affect the domestic country and the foreign country. Analyze

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

An increase in the import tariff will increase the price of the goods imported in the national market at a higher price the demand for the goods will be low and that will lead to a lower consumer surplus and that will be transfred to producer surplus and government revenue and some dead weight loss.

Export was reducing the consumer surplus of the exporting nation , a tariff will decrease the exports and increase the consumer surplus in the exporting nation and decrease the producer surplus as they can't export more.  

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
Assume a domestic market imposes a tariff on foreign goods. How will this affect the domestic...
Assume a domestic market imposes a tariff on foreign goods. How will this affect the domestic price? If the foreign market has highly inelastic supply and the domestic market is highly elastic demand, which nation will pay the bulk of the tax? (10 points)
International Bussines: Consider the import tariff... most goods that are imported into a country cost more...
International Bussines: Consider the import tariff... most goods that are imported into a country cost more due to import taxes and also to provide domestic goods an advantage in price. Consider a good that you currently rely on that is imported, how much more would you pay to continue to buy the import? At what point would you turn to the domestic market to save money? Discuss.
True or False: The imposition of an import tariff by a large country can cause an...
True or False: The imposition of an import tariff by a large country can cause an increase in the country’s welfare. When demand increases for a good subject to a quota the price would stay the same but imports would increase. Is true or false?why? thanks
1. Show graphically how imposing a tariff on Chinese imports (say steel) can increase domestic U.S....
1. Show graphically how imposing a tariff on Chinese imports (say steel) can increase domestic U.S. production and employment, but a production subsidy can achieve the same goal with less domestic economic welfare loss? 2. Show graphically in the large country case, how trade intervention in the form of imposing a tariff on Chinese imports (say garment) can lead to an economic welfare gain in the U.S?
Explain the impact of a tariff in a small country on the domestic price, domestic producers,...
Explain the impact of a tariff in a small country on the domestic price, domestic producers, consumers, and the government. Is the overall impact on the economy positive or negative? What do we call these losses or gains?
The advantages and disadvantages of international trade, describe how protective tariff policies affect foreign companies.
The advantages and disadvantages of international trade, describe how protective tariff policies affect foreign companies.
QUESTION 9 Import bans, import quotas, voluntary export restraints, and tariffs on goods all A. increase...
QUESTION 9 Import bans, import quotas, voluntary export restraints, and tariffs on goods all A. increase equilibrium quantities, but decrease prices. B. increase equilibrium quantity and prices. C. decrease equilibrium quantity and prices. D. decrease equilibrium quantities, but increase prices. 4 points    QUESTION 10 Which of the following situations will arise in the domestic market following the imposition of a tariff? A. imports increase, domestic production increases, prices increase B. imports decrease, domestic production increases, prices increase C. imports...
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...
Suppose the Trump administration was to impose import quotas on foreign steel which effectively reduces the...
Suppose the Trump administration was to impose import quotas on foreign steel which effectively reduces the amount of steel that foreign producers can sell in the U.S.   On a supply/demand graph show how this policy would affect the domestic steel market. On a separate supply/demand graph show how this policy would affect the domestic automobile market.
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT