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international trade Question 6 The following table shows the costs of protection, mainly tariffs and quotas, in the US and Europe for 1990, Cost per

international trade

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Question 6 The following table shows the costs of protection, mainly tariffs and quotas, in the US and Europe for 1990, Cost per Job Maintained Production Worker Jobs ($ thousands] Maintained To Domestic Consumers To the Nation United States (21 Industries)" 191, 764 169 54 European Union (22 industries)*" 243.650 191 99 "Huffever, Cary Clyde, and Kimberly Amn Elliot Meaturing the Costs of Protection in the United States, Washington DC milian fot Infomationral Economics, 1994. " Messerlin, Patrick A Measuring the Goals of Protection in Europe: European Commercial Policy in the 2020s Washington, DC Indiuin bo Infomational Economics, 2001 1) Explain why the cost per job maintained is higher for domestic consumers than for the whole nation. Use diagrams if necessary. 2) Are tariffs and quotas the best policy to maintain jobs in these industries? Discuss with reference to the specificity rule

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