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In Japan, there are tariffs, price supports, and import restrictions such as quotas on rice. Assume that the United States is exporting rice to Japan

In Japan, there are tariffs, price supports, and import restrictions such as quotas on rice. Assume that the United States is exporting rice to Japan and importing specific types of chemicals from there. a. Use the standard trade model to explain how a decrease in tariff rates can affect the relative prices in Japan. b. Use a relative supply and demand graph to explain the effects on terms of trade in Japan. c. Assume that Brazil, another country who is importing rice, tries to impose more import restrictions by increasing the tariff rates on rice. How does this can affect the terms of trade for the U.S. based on the standard trade theory predictions? (Explain each change step by step to get full credit; start by relative prices for Brazilian consumers, RD and RS, and finally terms of trade for the U.S.)

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