Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please write no more than 6 sentence: 1) You are hired by the Canadian government to help with an industrial policy question. The Canadian automobile

please write no more than 6 sentence:

1) You are hired by the Canadian government to help with an industrial policy question. The Canadian automobile company Magna has a significant market power and has lobbied the government to protect it from the foreign competitors in US. The government realizes that a temporary protection for the company is necessary as it is the only automobile company in Canada. Two proposals are put forward, either impose a tariff of 20% which is expected to limit the imports to 20,000 cars per year or restrict the imports directly to 20,000 cars. Which of the proposals would you recommend and why?

2) Suppose that the government of Webdad releases a new set of guidelines for its domestic banks. According to this new policy, banks can hand out loans to anyone withoutassessing the potential of a client to return the loans in future. Under this scenario, if the government wants to impose tariffs and protect its "infant" meme-generating industry then how can it justify the tariffs provided that the tariffs would lower overall welfare?

3) Explain why the trade volumes between U.S. and Europe may be higher than the trade volumes for U.S. and Canada, even though the U.S. and Canada share a border and are in close proximity to each other.

4) Consider the Heckscher-Ohlin model, why will labor immigration lead to a long-run increase in output in a labor-intensive industry and a decrease in the output of a capital-intensive industry?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Econometrics With Economic Applications

Authors: Dennis Halcoussis

1st Edition

0030348064, 9780030348068

More Books

Students also viewed these Economics questions

Question

Understand developments in knowledge creation and management

Answered: 1 week ago

Question

Explain key ideas of workplace learning

Answered: 1 week ago

Question

Explain how HRD may be implemented

Answered: 1 week ago