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1) Between the years 1981-1985, the Japanese agreed to voluntary export restriction that decreases the U.S. imports of the Japanese automobiles by around 10 percent. What would you expect short-run effects to have been over the U.S. and Japanese automobile industries?  If such restriction seems to be permanent, what would be its long-run effects in two nations on:

a) Allocation of resources,

b) Volume of employment,

c) Price level, and

d) The standard of living?

2) describe what is meant by the WTO, and how it relates to the international trade?  What problems, if any, encountered when several extraneous efforts are tied to the efforts in order to liberalize the trade?

3) What point is Bastiat that is trying to form with his petition of candlemakers?

4) The United States may generate the product X more effectively as compared to the Great Britain.  Still we import X from the Great Britain.” Describe this.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M912155

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