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Unformatted text preview: import quotas from the US; C. Because the US has quotas on imports of sugar, the US buys less sugar than it otherwise would, so reduces demand for sugar and depresses the price in the rest of the world below what it would be if the US had no quota. So countries that dont get quotas bear the cost of a lower price for the sugar they do grow. g. Farmers in the Midwest who grow sugar beet; B. More sugar is actually produced from beet than from cane in North America. h. Consumers of sugar in Hong Kong, which has free trade in sugar; B. US quotas depress the world price, so benefit consumers in the rest of the world, including Hong Kong. i. Producers of rum and cane spirit in the Caribbean [both use sugar cane as an input]; B. The world price for sugar, and therefore sugar cane, is depressed by the US quotas, and therefore these producers face a lower price for their input, i.e. lower costs, than they otherwise would [partly explaining why most rum in the US is imported]....
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- Spring '05