Answer the following questions as briefly and precisely as possible.
a. Why do most countries use trade protection tools?
b. Is there any theoretical justification to use trade protection tools?
c. Explain why rich countries subsidize agricultural sector in their economies.
d. Explain why rich countries subsidize high-tech firms in their economies.
f. Which countries (and groups within a country) most likely oppose international labor standards? Explain why.
g. Explain why some countries use voluntary export restraints (VER) instead of import quota?
h. List and explain at least three reasons as to why countries decide to form regional trade agreements.
i. Why we need to make distinction between large and small countries in making trade policy analysis?
j. In most cases the welfare effects of a tariff and a quota in a country are similar. However some countries prefer a tariff while others prefer a quota. Explain under what conditions a quota is preferable to a tariff.