INTERNATIONAL TRADE - ECON 4431W

Textbook: INTERNATIONAL ECONOMICS by Appleyard and Field (9th edition; McGraw Hill)

1.True/False? Explain and give diagrams when needed.

a. There are no benefits to a small country from imposing a tariff.

b. Import quotas always help domestic consumers.

c. Import quotas always help domestic producers.

d. Import quotas always help the domestic government.

e. Export subsidies in a small country lead to a fall in the world price and an increase in exports.