Answer the below questions

Question 01: Suppose a country subsidizes its exports and other country imposes a countervailing tariff to offset the effect. What would be welfare effects in two countries?

Question 02: If you were an import-competing country in a growing market, which trade instrument would you prefer - a tariff, an import quota or a subsidy? Why?

Question 03: A subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare. Explain.

Question 04: From developing country perspective, Acquired Comparative Advantage' has positive effects in growth and development. Explain.

Question 05: India's share in world trade increased from 0.5 to 2% over the last 7 years. The Government believes that this is on account of the trade policy initiatives. Do you agree? Explain.