Problem
1. Under what circumstances is the terms-of-trade argument for a tariff valid for a single nation? Does the world as a whole gain? Why or why not?
2. "A tariff is an attractive form of taxation because the tax burden falls on the foreigner." Do you agree? Explain.
3. India argues that infant-industry protection of its automobile industry is necessary. What factors support this claim? How would you assess the benefits and the costs from targeting this industry?
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.