1.- One of the dynamic gains From trade is the diffusion of technological advance. Can you explain this gain and The impact on domestic companies? 10 points.
the Dynamic gains refer the Relationship betwenn trade and economic growth, the economy experiences Increases in its stock of productive factors because a technological innovation Hepls a country existing stock of factors to become more efficient
that means in our model the PPF Has a growth
3.-The United States has used Quotas to protect its domestic sugar industry. What has been the likely impact Of these quotas on the world price of sugar (relative to the price that would Exist under free trade)?. 10 points.
Quotas restrict the amount Of foreinger competition in the Marketplace so that means the world Price of Sugar Will be down because the demand for sugar Will be fall
4.-In 1933, the federal “Buy American” act was first passed in the United States. Why they did that? What is The impact on consumers of these policies? 10 points.
The us government agencies Except the defense department purchase domestically produced godos and services Unless the domestic Price is more tan 12 percent greater tan the foreing Price
The effect of this type of policy is to raise the cost to government of providing public services, Transferring income in the process from taxpayers to domestic producers
5.- Under what Circumstances can commercial policy be an effective tool to solve world Environmental problems? 10 points.
7.- differences between custom Unión and a FTA
The basic difference between FTA and CU is how the members countries Treat nonmember in particular custom unión is an association of countries that Agrees to eliminate barriers to trade among its member and to form a common barrier againts nonmember countries
Countries that form FTA also Agree to eliminate trade barriers among themselves, but they mantain their own Individual trade barriers againts nonmember countries