International Trade and Balance of Payments

Short-answer Problems

1. Define the three basic types of trade barriers. (9 marks)

2.Explain 2 parties that will benefit and 2 parties that will lose from a protective tariff? (8 marks)

3. The next three questions refer to the below graph, where S_d and D_d are the domestic supply and demand for a product. The world price of the product is $12.

Sd 24 21 18 - 15 12 1= W O CO I - Dd 10 20 30 40 50 60 70 80 90