Problem
I. What is Oregon's Gross State Product {GSP)? [You may find it referred to as Gross Domestic Product (GDP).] Which industries are the biggest employers in Oregon? What does Oregon export and import to the rest of the world? Which countries are the major international trading partners of Oregon? This information is dispersed online and you will have to pick around to assemble your answer to this question. Requires online research.
II. To protect American jobs, the US. Government may decide to out US. imports of bulldozers by 60 percent. It could do so by either (i) imposing a tariff high enough to cut bulldozer imports by 60 percent or (ii) by persuading Komatsu and other foreign bulldozer makers to set up a VER arrangement to cut their exports of bulldozers to the U.S. by 60 percent. Which of these two policies would be less damaging to the U.S.? Which would be less damaging to the world as a whole? Explain.
III. What is the infant industry argument for protectionism? Is the argument rational, or an irrational appeal to emotion? Think carefully about why a country would wish to have particular industries located within their own borders.