How do you account for the widespread use of tariffs and import quotas internationally but the virtual absence of such trade barriers among the 50 states?
What will be an ideal response?
Domestic and international political considerations are usually the primary reason for the presence or absence of tariffs between areas of the globe. The framers of the constitution in the United States viewed the states as having a common identity and purpose. People do not always feel a similar common bond between themselves and people in other nations. Tariffs arise for all the reasons that national boundaries exist: settlement of wars, different cultures, varied languages, and different political and economic philosophies. With common culture and language, it is more difficult to arouse nationalistic fears that seem to play a large part in explaining trade barriers between nations.
There is also no accurate measurement of bilateral or multilateral trade among the states. Perhaps if we knew that, for example, New York had a huge trade deficit with California, we might be more inclined to enact trade barriers! On the other hand, developments such as the European Union and the North American Free Trade Agreement indicate that the economic benefits of free trade can overpower the political factors which give rise to trade barriers.
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a. 19% b. 81% c. 110% d. 376%
If there is inflation the:
A. distributional function of money is undermined. B. unit of account function of money is undermined. C. distributional function of money is improved. D. unit of account function of money is improved.
Consider a market consisting of two firms where the inverse demand curve is given by P = 500 ? 2(Q1 + Q2). If the Stackelberg leader's and follower's marginal costs are zero, the leader's marginal revenue is:
A. MR(QL, QF) = 125 ? QL + 0.5QF. B. MR(QF) = 250 ? 2QF. C. MR(QL) = 250 ? 2QL. D. MR(QL, QF) = 125 ? 0.5QL + QF.
Describe and explain the three principle methods of financing used by corporations
What will be an ideal response?