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Study Resources (Business Management)

  3.Consider the following variation of Table 11-1 for the U.S. semiconductor market: a.Fill in the values for W, X, Y, and Z. b.Suppose that before NAFTA the United States had a 20% tariff on imported semiconductors. Which country supplied the U.S. market? Is it the lowest cost producer? c.After NAFTA, who supplies the.
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  9.Suppose that in response to a  threatened antidumping duty of t, the Foreign monopoly raises its price by the amount t. a.Illustrate the losses for the Home country. b.How do these losses compare with the losses from a safeguard tariff of the amount t, applied by the Home country against the Foreign.
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  2.Figure 9-2 shows the free-trade equilibrium under perfect competition and under monopoly (both with the price PW ). In this problem, we compare the welfare of Home consumers in the no-trade situation and under free trade. a.Under perfect competition, with the price PW, label the triangle of consumer surplus and the.
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  3.Rank the following in ascending order of Home welfare and justify your answers. If two items are equivalent, indicate this accordingly. a.Tariff t in a small country with perfect competition b.Tariff t in a small country with a Home monopoly c.Quota with the same imports M in a small country, with a Home.
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1.Describe the impact of each of the following goals from the Hong Kong WTO meeting on (i) domestic prices and welfare of the country taking the action and (ii) world prices and welfare for the partner countries. a.Elimination of agriculture export subsidies b.Reduction of agricultural tariffs c.Duty-free, quota-free access for 97% of goods.
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  6.Rank the following in ascending order of Home welfare and justify your answers. If two items are equivalent, indicate this accordingly. a.Tariff of t in a small country corresponding to the quantity of imports M b.Tariff of t in a large country corresponding to the same quantity of imports M c.Tariff of.
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  1.Figure 9-1 shows the Home no-trade equilibrium under perfect competition (with the price PC ), and under monopoly (with the price PM ). In this question, we compare the welfare of Home consumers in these two situations. a.Under perfect competition, with the price  PC, label the triangle of consumer surplus and.
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  11.What is a positive externality? Explain the argument of knowledge spillovers as a potential reason for infant industry protection. 12.If infant industry protection is justified, is it better for the Home country to use a tariff or a quota, and why? 13.Figures A, B, and C are taken from a paper by.
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  11.To improve national welfare, a large country would do better to implement an ex port subsidy rather than an import tariff. Is this true or false? Explain why. 12.Who gains and who loses when governments in Europe and the United States provide subsidies to Airbus and Boeing? 13.Provide motivations for the use.
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  8.Suppose the Home firm is considering whether to enter the Foreign market. Assume  that the Home firm has the following costs and demand: Fixed costs = $140 Marginal costs = $10 per unit Local price = $25  Local quantity = 20 Export price = $15 Export quantity = 10 a.Calculate the firm’s total costs.
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    21.How would Author Naomi Klien view the introduction of a Mc Donald’s franchise into a small village in Sub-Saharan Africa? A.As an opportunity for growth and productivity. B.As an addition to the job market. C.As a blight on the landscape, and an example of Western imperialism. D.As an agent of commercial peace.   22.Nations that have.
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  7.Read the following excerpt, and using what you have learned in this chapter, discuss how offshoring creates opportunities for the countries involved. Sudhakar Shenoy, chief executive of Information Management Consultants (IMC) in Reston, makes an effective pitch for offshoring. Several years ago IMC saw a market developing for software that would allow.
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      11.A case in which global social, economic, and political interconnections are plentiful can be referred to as A.thick. B.current. C.enhanced. D.aligned. E.All of the above   12.Globalization can A.be explained as an unstoppable force, as seen by the WTO riots, trade multilateralism, and modern terrorism. B.be slowed, as shown by the effects of bipolarity during the Cold War. C.be.
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  6.Explain why the WTO is more concerned with the use of direct-export subsidies than production subsidies in achieving the same level of domestic support. 7.Boeing and Airbus are the world’s only major producers of large, wide-bodied aircrafts. But with the cost of fuel increasing and changing demand in the airline industry,.
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  1.The following questions refer to Side Bar: Key Provisions of the GATT. a.If the United States applies a tariff to a particular product (e.g., steel) imported from one country, what is the implication for its steel tariffs applied to all other countries according to the “most-favored-nation” principle? b.Is Article XXIV an exception.
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  9.Here we examine the effects of domestic sales taxes on the market for exports, as an example of the “targeting principle.” For example, in the domestic market, there are heavy taxes on the purchase of cigarettes. Meanwhile, the United States has several very large cigarette companies that export their products.
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  a.Calculate Home consumer surplus and producer surplus in the absence of trade. b.Now suppose that Home engages in trade and faces the world price, P * 5 $6. Determine the consumer and producer surplus under free trade. Does Home benefit from trade? Explain. c.Concerned about the welfare of the local producers, the.
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  9.Refer to following variations of the payoff matrix for the environmental game shown in Figure 11-7. In this problem, a number is assigned to represent the welfare level of each outcome for Home and Foreign. a.First, consider the case of global pollution, in which the government puts more weight on producer.
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  4.Refer to the prices of Japanese automobile imports under the VER (Figures 9-5) and answer the following: a.What component of the price of imported automobiles from Japan rose the most during the period 1980 to 1985? b.Sketch how Figures 9-5 and 9-6 might have looked if the U.S. had applied a tariff.
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  8.Refer to Figure 11-4 when answering this question. a.Redraw Figure 11-4, panel (a), assuming that the production externality is positive so that the SMC curve lies below the supply curve. Label the area c that reflects the change in the cost of the externality when trade is opened. Is this area.
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  7.Rank the following in ascending order of Home welfare and justify your answers. If two items are equivalent, indicate this accordingly. a.Tariff of t in a small country corresponding to the quantity of imports M b.Quota with the same imports M in a small country, with quota licenses distributed to Home firms.
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  1.All are processes of globalization EXCEPT A.the Internet. B.interconnected financial markets. C.the spread of communications and transportation systems. D.unprecedented integration of economic activities. E.the creation of Wal-mart.   2.A decrease in levels of globalization is A.unglobalizing. B.fragmentation. C.deglobalization.  D. anti-polarization.   3.Globalization is considered to A.be a recent phenomenon brought about by the Internet. B.have started at the end of World War II and.
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  14.Consider the following hypothetical information pertaining to a country’s imports,  consumption, and production of T-shirts following the removal of the MFA quota: Without MFA With MFA( Free Trade ) World price ($/shirt)$2.00$2.00 Domestic price ($/shirt)$2.50$2.00 Domestic consumption (million shirts/year)100125 Domestic production (million shirts/year)7550 Imports (million shirts/year)2575 a.Graph  the effects of the quota removal on domestic consumption and production. b.Determine.
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  6.Refer to the survey in Table 11-2 regarding consumers’ attitudes toward working  conditions. a.Fill in the survey questions for yourself and at least five friends. b.Average your results and compare them with those in Table 11-2. Are there any consistent differences in the answers from your friends and those in Table 11-2? c.Do.
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  2.Figure 11-2 shows the tariff game among large countries. a.Redraw the payoff matrix for a game between a large and small country. b.What is/are the Nash equilibrium/equilibria, assuming that the large country applies an optimal tariff? c.What does your answer to (b) tell you about the role of the WTO in a situation.
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  8.Refer to Problem 7. Now suppose the European government wants Airbus to be the sole producer in the lucrative small-aircraft market. Then answer the following: a.What is the minimum amount of subsidy that Airbus must receive when it produces small aircraft to ensure that outcome as the unique Nash equilibrium? b.Is it.
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  10.Why might it be relatively easier for an undeveloped country like India to export service activities through offshoring than to participate in the global economy by producing manufacturing components? 11.It is widely noted that even though China is the favored destination for manufac turing offshoring, it is far behind India in.
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