Problem
Impose a Barrier to Trade? Assume you are the prime minister of a poor nation that is located in another part of the world. Your government has been working to encourage economic growth by investing in new technology and training in modern skills for its workers. Although some progress has been made, there is a long way to go before your nation's businesses can compete successfully with those in other countries. Decide what type of barrier to trade (tariff or quota) you would impose in the following situations. You also may choose to impose no barrier at all. Explain each of your choices.
a. Your nation has invested in firms that produce kitchen appliances. These firms' costs are about 25 percent higher than the cost of buying imported appliances from producers in other nations. The firms are selling few of their products and are in danger of failing. What barrier if any, would you place on the importation of appliances?
b. Your nation has no known oil reserves. It imports all the oil it uses from other nations. More money is spent paying for oil than is spent for any other imported product. A large part of the imported oil is used by consumers who like to take long weekend drives in the country. You would like to see more of your nation's money spent importing tools and machinery. What barriers would you place on the importation of oil?
c. Your nation has fertile land that could be used to grow fruits it might export. Unfortunately, it lacks the ability to produce fertilizer, which these crops require. What barriers, if any, would you place on the importation of fertilizer?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.