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Unformatted text preview: • Should govt. intervene? • Interferences with international trade o Tariff=tax on imports o Import quota o With either tariff or quota, danger of retaliation o Voluntary export restraint Like quota run by exporters Exporters gain → less pressure for retaliation o US has trade deficits (exports < imports) o Cost per “job saved” o If trade with Canada is bad for US, trade with Ohio is bad for Michigan o “jobilism” o Any lost job is horrible o Power loom- hand weavers lost jobs o Kerosene lanterns-candle makes lost job o Electronic switching – switchboard operators lost jobs o Better: prepare for tomorrow’s jobs o Safety net for those harmed o S to left o Elasticity=measure of responsiveness of D and S...
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This note was uploaded on 04/19/2011 for the course EC 201 taught by Professor Ballard during the Fall '08 term at University of Michigan.
- Fall '08