Using the Aggregate Demand and Supply model, demonstrate the impact on the Korean economy of a set of tariffs imposed by Japan. Explain carefully with theory. Diagram required.
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Using the Aggregate Demand and Supply model, demonstrate the impact on the Korean economy of a set of tariffs imposed by Japan. Explain carefully with theory. Diagram required.
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- Assume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy. The biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country. Assume Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government.Your explanation should not exceed 200 words.International trade: If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a)The world price of textile rises, and Germany imports less. (b)The world price of textile stays constant, and Germany imports less. (c)The world price of textile falls, and Germany imports less. (d)The world price of textile stays constant, and Germany imports the same as before. Explain your answer clearly. Limit your explanation to 200 words.(a) Define, compare, and contrast the following trade policies: (i) tariffs, (ii) export subsidies, and (iii) quantitative restrictions. Be sure to include in your answer a discussion of the expected effect these policies have on prices, exports (for the exporting country), imports (for the importing country), and the welfare of various actors. (b) In 2016, the United Kingdom voted to withdraw from the European Union. First, explain the motivation supporting both the "leave" and "stay" policies. Second, what is the expected economic effect of the United Kingdom leaving the European Union?
- What happens to the equilibrium price and quantity when a country sets a low or medium tariff or import quota? Group of answer choices The equilibrium price and quantity will be lower than with no trade. The equilibrium price and quantity will be somewhere between those that prevail with no trade and those with completely free trade. The equilibrium price and quantity will be the same as with no trade. The equilibrium price will be lower, and the quantity will be higher than the case with no trade.In South Korea's state-led industrialization, export subsidies allowed South Korean products (from Samsung, Hyundai) to be sold all over the world. Compare and contrast export subsidies to import tariffs. Which factor might lead a country to decide on one or the other?The nation of Bermuda is “small” and assumed to be unable to affect world prices. The Domestic Supply and Domestic Demand curvesfor boxes are:S = 60 + 20PD = 1160 − 15P(a) Assume Bermuda is Completely open to trade. What is the equilibrium price and quantityconsumed?
- Consider the case of the following large country (all prices are measured in euros, and quantities are measured in single units): – Domestic demand curve: P = 3600 –3Q – Domestic supply curve: P = 2Q – World free trade price of imports = 140 euros per unit – When the tariff is introduced, domestic prices rise by exactly one third of the amount of the tariff. Calculate the following. Also show your workouts, draw a diagram depicting the importing country market under free trade and with a tariff. With a 30 euro specific tariff: The change in consumers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The change in producers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The amount of tariff revenue, in euros: __________________________________________________________________________________ The change…A country decides to impose higher tariffs on imported goods to encourage domestic production. This policy change impacts the circular flow of income and expenditure by altering the dynamics of international trade. In this scenario, the imposition of tariffs on imports primarily:A) Acts as a leakage in the circular flowB) Functions as an injection into the circular flowC) Has no significant impact on the circular flowD) Reduces government expenditure in the circular flow Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Supporters of the jacket quota over free trade argue that the trade restriction will save jobs in the United States. What are the potential pitfalls of such an argument? Check all that apply. China may retaliate, imposing restrictions on their imports from the United States, thereby generating unemployment in U.S. export industries. Consumers will likely divert large amounts of scarce resources toward lobbying for the removal of the quota. Trade restrictions simply reshuffle jobs by increasing employment in the protected industry and reducing employment in other industries. The costs to domestic jacket consumers may outweigh the benefits of jobs saved in the jacket industry.
- A small country can import a good at a world price of $10 per unit. The domestic demand and supply curves are given by the following equations: Demand: D = 400 – 5P Supply: S = 20 + 10P, where D is the quantity demanded, S is the quantity supplied, and P is price a) Derive the import demand curve of the country and determine the level of imports. b) Calculate the effects of a per-unit tariff of $ 5 levied on imports on consumers, producers, government revenue, and overall national welfare, using the concepts of consumer surplus, producer surplus, and deadweight loss. c) Suppose that each unit of production yields a marginal social benefit of $10 and calculate the effect of the tariff on total welfare.The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 890 Domestic Demand Domestic Supply 850 810 770 730 690 650 610 570 Pw 530 490 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)The demand and supply functions for a product in a large country are given as Qd = 130 – 3P and Qs = -30 + 2P respectively. The world price is 20$ and the large country imposes an ad valorem tariff of %50. After the imposition of tariff world price decreases to 16$. Calculate the change in consumer surplus, producer surplus, government revenue and social welfare after the imposition of tariff.