Assignment:
In this assignment, you will be completing a quantitative analysis. Read the applied problems 7-1 and 7-8 on page 160 of the textbook. Answer both questions using a chart and quantitative explanations, as well as written arguments. To complete this assignment, review cases 7.2.2 and 7.2.3, which start on page 153. Follow the explanations and the charts. Instead of using letter symbols in the chart, use actual numbers. For example: Instead of using world Price Pw use real numbers, such as $10. Specifically, your analysis should include:
• A description of the impact of import quotas on prices, quantities supplied, and quantities demanded-Problem 7-1.
• A description of the impact of import quotas on consumers-Problem 7-1.
• A description of the effect of a complete trade ban on a country-Problem 7-8.
• A visual graph depicting scenarios 1 and 3; base your answer on the 7.2.1 and 7.2.2 charts. Create the charts using actual numbers.
Guidelines: Your case study should be 2 to 3 pages in length (not including title page and reference page) and written in APA style.
Readings:
Global trade policy
By Pamela J. Smith