Assignment:
Please write five paragraphs on the effect of tariffs on imported goods from Mexico on the U.S. economy. You will use supply and demand analysis to illustrate the effects of import tariffs on the equilibrium price and quantity in one of the markets in the U.S. One example of tariff that has been imposed to protect U.S. producers from foreign competition is the "Obama's Tariffs on Chinese Tires" (pp. 130-131; Textbook).
Mexico is one of the three main US trading partners in addition to Canada and China.
Mexico is the U.S. third-largest trading partner, with $525 billion in annual trade between them. In 2016, it exported goods to the U.S. worth nearly $63 billion more than it imported. According to the U.S. Chamber of Commerce, 6 million U.S. jobs depend on U.S. trade with Mexico. The following products are examples of Mexican products sold in the U.S. markets:
a). the market for fruits and nuts such avocados, lemons, watermelons, walnuts...
b). the market for beers and spirits such Corona, Dos Equis, Modelo, tequilas...
c). the market for mineral fuels such as oil...
d). the market for machinery, electrical machinery and vehicles...
You must select one specific market (for example: the market for fruits and nuts) and one specific imported good from Mexico (for example: avocados). Your analysis will consist of five sections. Each section must contain at least one paragraph. Each paragraph must contain at least three sentences:
1. Explanation of issue: You will clearly state the problem/issue and include any information necessary to fully explain the issue.
2. Evidence: You will select appropriate evidence to thoroughly investigate the problem, and critically evaluate the viewpoints.
3. Assumptions: You thoroughly analyze your assumptions and include relevant contextual information.
4. Your position (perspective, thesis/hypothesis): You will present a hypothesis that takes into account the complexities of the issue.
5. Conclusions and related outcomes: Your conclusions will be logically tied to the evidence and outlined.