S-10 Ch 10- Arguements - Today: Review Chapter 10 Arguments...

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W. J. Streeter mec 292 – Fall 2008 Today: Review Chapter 10 Arguments for and against Protection Chapter 10 Problems, pages 207 & 208. Discuss Problems 7, 8 and 10. Article: “Economist Wants Business and Social Aims to Be in Sync” The New York Times , January 30, 2007
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The Washington Post, September 30, 2008 As contagion spreads, moods abruptly shift European confidence was eroded over the weekend by a raft of emergency bank rescues. By Monday morning, after Asian stock markets had nose-dived, credit markets were seizing up, meaning that the normal flow of trading among banks wasn't taking place. Yet the contagion continued. U.S. stocks opened weak, then fell off a cliff after the House of Representatives voted against the $700 billion plan intended to restore stability to the nation's wobbly financial system. That sent Brazil’s stock market down more than 9 percent, prompting authorities in Sao Paulo to temporarily suspend trading, amid worries of a deep U.S. economic slowdown. Bank of Japan Governor Masaaki Shirakawa, said Monday that global financial liquidity "has almost dried up." Guillermo Mondino, an analyst with Barclays Capital, wrote in a new report that "the global credit crunch seems increasingly to be spilling over to emerging markets. In Iceland, the government said Monday it had taken control of Glitnir bank, the country's third-largest, paying about $878 million for a 75 percent stake. The French and Belgian governments stepped in to rescue another failing European bank Tuesday as the turmoil that began on Wall Street continued rippling across the globe. W. J. Streeter mgt 308 – Fall 2008
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W. J. Streeter mec 292 – Fall 2008 Review: Supply and Demand Two nations – One product Do Producer Surplus or Consumer Surplus exist in Autarky? Vietnam Japan CS PS CS PS
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W. J. Streeter MEC 292 – FALL 2008 Chapter 10 Arguments for and against Protection
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W. J. Streeter mec 292 – Fall 2008 from Chapters 8 and 9 A tariff or NTB to imports can have various intended effects: Increase domestic production of a product Increase domestic employment of labor Increase domestic employment of other factors of production Decrease domestic consumption of a product Increase government revenue Alter distribution of income in the country
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W. J. Streeter mec 292 – Fall 2008 Figure 10.1 – Incentive Distortions and Their Effects
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W. J. Streeter mec 292 – Fall 2008 Specificity Rule If an externality is present, government policy should intervene as directly as possible on the specific source of the externality, to most enhance national economic
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S-10 Ch 10- Arguements - Today: Review Chapter 10 Arguments...

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