Job outsourcing has been one of the key issues of all recent election campaigns. ManyAmericans believe that job outsourcing must be stopped. Some disagree and believe that job outsourcing is good for the US economy. In any case, public opinion polls consistently show that Americans see job outsourcing as a critical issue, and the Government cannot ignore it. With unemployment remaining high, the Government is considering all possible options and scenarios for dealing with the economic crisis and pleasing the voters. Nothing is off the table, including banning job outsourcing altogether. You are invited to join the Presidential Advisory Board on International Business and offer your forecast and evaluation of consequences for the following extreme scenario: A complete ban on imports of all product groups that were predominantly manufactured in the US as of 19?5 and are now imported from China, Mexico and other iowiabor-cost countries. Essentially the new law will ban ali imports of electronics, toys, apparel, cars, and many other general consumer goods. That means that all American companies that moved their production to other countries will have to return back to America if they want to sell their products in America. Along with other experts, you are asked to predict and evaluate the economic consequences of the plan. If you believe the effect may depend on (vary by} product group. region, population segment. business size. etc. you may provide additional explanation for the difference. Question 2 5 pts 1. {5%} Variety Will the variety of consumer products expand or shrink? Why? First, state the trend O Decline O Remain the same (i) Increase Question 3 0 pts Now, explain why. No need for fulllength sentences here or for any other answer. Just giye the keywords, preferably in a format like this: For example, Question: How would a discovery of a new oil eld affect consumer prices? Sample Answer: New oil eld a more oil a supply of oil up a price of oil down a cheaper energy a lower production cost a consumer prices down. Please note, the "a" here is used as an arrow {A leads to B, or causes B, orA 1* B}. You can use any other notation you like that you feel will help you keep your answers shorter. Bullet list is also a very good idea. Question 4 10 pts 2. (10%) Quality: Will the quality of consumer products improve or decline? O Decline O Remain the same O Increase Question 5 0 pts Why? Please explain the mechanism behind the stated trend.Question 6 5 pts 3. (5%) Production cost: Will the production cost go up or down? Why? O Decline O Remain the same O Increase Question 7 0 pts Why? Please explain the mechanism behind the stated trend.Question 8 5 pts 4. {5%} Consumer prices Will consumer prices go up or down? Why? O Decline O Remain the same O Increase Question 9 0 pts Why? Please explain the mechanism behind the stated trend. Edit 1|ll'iem-r Insert Format Tools Table 5. {1036} Demand for products that were previously outsourced and must non.r be made 100% in America: Will Americans now be able to but.r more or fewer products of the affected categories (electronics, toys, apparel, cars, etc}? Hint: Keep in mind, desire to buy and demand are different things. Demand is Icluanlrit'glr consumed, not desired quantity to consume. For example, I desire to drive a Ferrari, but I don't have $39 to pupr one, so I create no demand for Ferrari cars. O Decline O Remain the same C) Increase Question 11 0 pts Why? Please explain the mechanism behind the stated trend. 6. (10%) Demand for other products and services that remained in the US: Will Americans now be able to buy more or fewer products of other products and services (software, pharmaceuticals, financial and insurance services, etc.)? Hint: think overall purchasing power of consumers. O Decline O Remain the same O Increase Question 13 0 pts Please explain the mechanism behind the stated trend. Edit View Insert Format Tools Table7. (5%) Consumer prosperity Will the plan have a positive or negative effect on Americans (consumers)? Will Americans now afford/consume more or less goods/services overall? O Decline O Remain the same O Increase Question 15 0 pts Why? Please explain8. (5%) Prosperity of American businesses Will American companies (overall across all industries, in and outside the US) be better or worse off; make more money, be more competitive in the global arena? Why? Hint: Think not only about their ability to sell, but also about their ability to acquire parts, components, office supplies, etc. Decline Remain the same O Increase Question 17 0 pts Why? Please explain the mechanism Edit View Insert Format Tools Table9. Unemployment Will the plan lower unemployment (% of the population without jobs)? How? Normally, any policy has some positive effects and some negative effects. For example, in the context of unemployment, the ban on imports may lead to increased employment in some sectors and job losses in others. The overall effect of the policy is usually determined by which of the two effects is stronger. Please show "both sides of the coin" by explaining what consequences of the ban on imports will push unemployment up, and what consequences will push unemployment down. Then state the overall trend based on your understanding of which of the two effects will be stronger. Question 18 10 pts 9a. (10%) Factors decreasing unemployment List factors/explain mechanism that will push unemployment down (put more people to work)9. Unemployment Will the plan lower unemployment (% of the population without jobs)? How? Normally, any policy has some positive effects and some negative effects. For example, in the context of unemployment, the ban on imports may lead to increased employment in some sectors and job losses in others. The overall effect of the policy is usually determined by which of the two effects is stronger. Please show "both sides of the coin" by explaining what consequences of the ban on imports will push unemployment up, and what consequences will push unemployment down. Then state the overall trend based on your understanding of which of the two effects will be stronger. Question 18 10 pts 9a. (10%) Factors decreasing unemployment List factors/explain mechanism that will push unemployment down (put more people to work)9b. (10%) Factors increasing unemployment List factors/explain mechanism that will push unemployment up (more people out of work): Edit View Insert Format Tools Table 12pt * Paragraph BIYA V T2 v9c. The overall trend State the overall trend (increase/decreaseo change). Decline O Remain the same O Increase 10. Wages Will real wages in the US go up or down? That is, will Americans make more or less in real wages/salaries (adjusted for inflation and purchasing power). Why? Similar to the previous question, please explain how a ban on imports can lead to increased wages for some and decreased wages for others. Then draw a conclusion about the overall effect of the policy on wages.10a. (10%) Factors pushing wages down List factors/explain mechanism that will push wages down: Edit View Insert Format Tools Table 12pt * Paragraph " B I U A * 2 v TV : p E: 1 0words > Question 22 10 pts 10b. (10%) Factors pushing wages up List factors/explain mechanism that will push wages up:10c. Trend State the overall trend for changes in wages (increase/decreaseo change). Decline O Remain the same Increase Question 24 5 pts 11. (5%) America's competitive position in the global arena: Will the plan make America more competitive in the global arena or not? O Weaken O Remain the same O Strenthen Question 25 0 pts Why? Explain the mechanism