Countries try and restrict trade with various trade policies; Tariffs, Subsidies, Import Quotas, Voluntary Export Restraints, Local Content Requirements, Administrative Policies, Anti-Dumping Duties. Be specific.
1.Explain how tariffs impact trade. For example, in 2018 the USA imposed a 25% tariff on steel imports. How does that impact steel imports?
2.Explain how subsidies impact trade. The USA has large subsidies for corn farmers. How does that impact corn exports/imports?
3.Explain how import quotas impact trade. USA has sugar beet farmers who grow sugar beets that are refined into sugar. Also, corn is processed into the sweetener corn syrup. The USA has import quotas on sugar. How does that impact the price of sugar? Sugar beet farmers and corn farmers?
4.The Buy American Act requires the federal government to buy domestic “articles, materials, and supplies” when they are acquired for public use. This is a form of local content requirements. How do these rules impact trade?
5.Administrative trade barriers are bureaucratic procedures ( red tape ) that a trading firm has to get through when shipping the product from one country to the other. Explain how administrative policies impact trade.
