Suppose the U.S. government increases trade barriers on Japanese cars coming into the United States.

a. What impact would this have on the American car market? What about the impact on American automotive workers? (Hint: think in terms of demand and supply analysis).

b. What impact would this have on the Japanese car market in the United States?

c. Who benefits and who loses from the higher trade barriers imposed on Japanese cars coming into the United States?

d. What could motivate government to pursue these stricter entry barriers on Japanese cars?