{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 5 concept summary - The tariff reduced the amount of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
In deciding what to export from Rodamia to other countries, I chose to export cheese over corn and DVD players over watches, because cheese and DVD players have a lower opportunity cost for Rodamia compared to the other countries. I also chose to import corn from Uthania and watches from Suntize, because these items are produced at a lower opportunity cost for them compared to others. Being able to recognize comparative advantages from the chart took a couple tries, but after completing the simulation a couple times it made more sense. After the watches were being dumped, I chose to impose a tariff of $40.00 per unit, which equals the dumping margin.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The tariff reduced the amount of watches being imported and increased the amount of watches being produced domestically. I also made the decision not to impose a tariff on imported corn. I made this decision because free trade is better overall versus imposing tariffs or quotas on trade. Being that Rodamia is new to international trade I thought that it would be in the countries best interest not to start any trade wars. This is also the reason why I chose to negotiate free trade with both Alfazia and Uthania....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online