Economics Name Institution Course Date Part A Import tax raises the household cost of the foreign made item and local makers of the item raise their cost when the residential cost of imports increments. Local customers lose buyer surplus on the aggregate sum that they expend the two imports and locally delivered item as a result of the expansion in residential cost. Local makers pick up maker surplus on the sum that they create and offer on account of the expansion in residential cost. Shoppers lose more in light of the fact that the local amount devoured is bigger than the household amount delivered. Imposing import tariffs on a large and small nation has different effects. The national welfare of a small nation is lowered when an import tariff is levied (Carbaugh 2016). This is because the tariff does not affect the welfare in any favorable manner. Deadweight loss the fizzled arrangements of the NAFTA which have disintegrated expectations for everyday comforts undermined laborers rights crushed family cultivates and enabled enterprises to challenge residential open intrigue laws yet could in like manner join new courses of action as far as possible the limit of chose state and neighborhood governments all through the side of the equator to coordinate both open and private organizations or to give essential open organizations.References Carbaugh R. (2016). International Economics. Boston MA: Cengage Learning. IMF. (2017 April 19). The IMF and the World Trade Organization. Retrieved from www.imf.org D. (2016). International economics. Hoboken NJ: John Wiley & Sons. Sexton Robert L. (2016). Exploring macroeconomics. Boston MA: Cengage Learning. Starbird C. & Pettit J. (2004). Concepts in international relations: Contemporary issues in South America. Denver CO: Center for Teaching International Relations. Viner J. & Oslington P. (2014). The customs union issue. Oxford: Oxford University Press. [...]
Answer the Following questions and please be SPECIFIC! Stay in ORDER and FOLLOW ALL DIRECTIONS. 2 pages- Explain the various impacts of an import tariff in small nations vs. large nations. What are the three main reasons governments prefer using a tariff to restrict imports versus quotas? Should our government use a weak dollar exchange rate policy to make imports more expensive in order to help our exporters? What roles do the IMF and WTO play in trade and the use of tariffs? 2 pages Part I: Many European countries have adopted the same currency, called the Euro. When countries adopt the same currency and have the same monetary policy, it is called a monetary union. What are the differences between a monetary union, a customs union, and a common market? Part II: What is the Free Trade Agreement of the Americas? Most arguments for or against the FTAA are based on the success and/or failure of the NAFTA agreement. Based on your research of these two agreements, do you think the FTAA should be established? Why or why not? Defend your answer. Adhere to APA formatting and reference guidelines when writing your response. Additionally, your response should be free of grammatical errors, use complete sentences, and give specific details to support statement.