Thailand, a small country, has to decide whether to impose a tariff or a quota on the import of computers. You are considering investing in a local firm that is a major importer of computers. 

1. What will be the impact of a tariff on prices, quantity produced, and quantity imported in Thailand (the importing country)? 

2. If Thailand imposes a tariff, what will the impact be on prices in the exporting country? 

3. How would a tariff affect consumer surplus, producer surplus, and government revenue in Thailand? 

4. Explain whether the net welfare effect of a tariff is the same as that of a quota. 

5. Which policy, a tariff or a quota, would be most beneficial to the local importer in which you may invest and why?

6. If Thailand were to negotiate a VER with the countries from which it imports computers, would this be better or worse than an import quota for the local importing firm in which you may invest? Why?