Question 1

Briefly outline how, typically, the overall level of support for agricultural producers has evolved over the last 30 years, in both "High Income" and "Developing" countries. What explanation could be given for the difference between the two, and the changes over time?

Using the case of a 'small' country importing an agricultural commodity, show diagrammatically an example of how trade policy may achieve the typical outcome for a "High Income" country. Explain how this analysis might be used to calculate the nominal rate of assistance to farmers in this country.