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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 tomorrows jobs o Safety net for those harmed o S to left o Elasticity=measure of responsiveness of D and S...
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- Fall '08