Economic Isolation of Qatar Due to a diplomatic dispute, Saudi Arabia and its allies decided to isolate

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Economic Isolation of Qatar Due to a diplomatic dispute, Saudi Arabia and its allies decided to isolate Qatar by cutting off all trade ties with it. The boycott included food items, which particularly affected Qatar as the country largely depends on imports. Qatar subsequently filed a formal complaint with the World Trade Organization (WTO), arguing that national security was an acceptable yet an almost unprecedented and taboo justification.

a. What does the news clip imply about Qatar’s comparative advantage in producing food items?

b. Do you think Qatar’s argument in its complaint to the WTO valid? Explain why.

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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