Homework 5 Answer

Homework 5 Answer - ECON 460, Spring 2011 Homework 5...

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ECON 460, Spring 2011 Homework 5 Answers Due in class on March 2, 2011 PLEASE FIND DEFINITIONS IN YOUR TEXTBOOK. Please read Chapter 13 to answer questions 2 to 10 1. If Austria is a rich country, Brazil is a middle income country, while Chad is a poor country with the following goods in the consumption basket of consumers. Austria: Austria: Peas, Suits, Tonic, Wine, Wool Brazil: Nylon, Onions, Peas, Suits, Tonic Chad: Wheat, Bicycle, Nylon, Onions, Peas What will each pair of countries trade with each other? (6 points) According to Linder’s hypothesis, countries trade goods that are common in the consumption basket of their citizens. Austria and Brazil will trade Peas, Suits and Tonic Brazil and Chad will trade Nylon, Onions and Peas Austria and Chad will trade Peas 2. Define (3 points * 6 = 18 points) (i) Specific Tariff: (ii) Ad Valorem Tariff: (iii) Import Subsidy: (iv) Preferential Duty: (v) MFN (NTR) status: (vi) Offshore Assembly Provision: 3. What are the U.S. tariff rates for the MFN nations and the Non-MFN nations for the following
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This document was uploaded on 10/28/2011 for the course ECON 460 at UNC.

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Homework 5 Answer - ECON 460, Spring 2011 Homework 5...

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