Openstax CH 21 Globalization and International Trade Fall 22 (Eight Questions) Q1: Describe the national Security, declining industries, and infant industry arguments for protecting a domestic industry from international competition. Q2: Describe the COUNTER ARGUMENTS to the national security, declining industries, and infant industry arguments for protecting a domestic industry from international competition. Q3: How does the cost of "saving" jobs in protected industries compare to the workers' wages and salaries? Is there an overall net benefit or net cost? Q4: Describe how protectionism affects the price of the protected good in the domestic market? Who ends up paying the cost of protectionism? Q5: Is it legitimate to impose higher safety standards on imported goods than exist in the foreign country where the goods were produced? Q6: Firms hurt by cheap imports typically argue that restricting trade will save U.5. jobs. What's wrong with this argument? Are there ever any reasons to support such trade restrictions? Q8: Identify the following areas using the letters in the graph below: a) Consumer Surplus with no international trade = b) Producer Surplus with no international trade = c) Consumer Surplus with Free International trade = d) Producer Surplus with Free international trade = e) Consumer Surplus with Tariff = f) Producer Surplus with Tariff = g) Government Tariff Revenue = h) Dead weight Loss with Tariff = Domestic A Supply B Domestic Price L WP with Tariff M V World Price T Domestic Demand Quantity