After your successful education at University, you got a job as a research analyst at the Ministry of Trade and Industry in Ghana (congratulations). Your immediate boss, the deputy minister, is aware that you have taken a course in International Economics with Prof. Barret (his roommate at the University of Ghana in the late 80s). At the time of your appointment, the ministry had just started implementing policies to improve Ghanas trade position with the rest of the world. For your first assignment, the deputy minister has asked you to write a paper on the costs and benefits (welfare analysis) associated with increasing exports with subsidies or reducing imports with tariffs.

1.) Assuming Ghana is a big country, use the appropriate graphs to analyze the issue presented to you. Your analysis should include the static and dynamic effects of the two policies.