Case Study topic

1.

Partial equilibrium analysis of an import tariff on trade between the United States and China.

1.1.

Choose an agricultural commodity or a product that has been traded between the United

States and China. You can find information on U.S. agricultural trade at

FATUS

. The

table "U.S. trade with top trading partners, by calendar year" shows U.S. trade data with

China and other countries. FATUS also has publications that may have additional

information on the commodity that you can use in your case study.

1.2.

Review section 8.2 and Figure 8.1 in chapter 8 and Figure 4.1 in chapter 4. Then, draw a

three-graph figure similar to Figure 4.1 to explain the effects of a an import tariff.

1.3.

welfare analysis of the tariff for the importer country. Explain the effects of the

tariff on consumer surplus, producer surplus, the government, and the country.

1.4.

Do a welfare analysis of the tariff for the exporter country. Explain the effects of the

tariff on consumer surplus, producer surplus, the government, and the country.

1.5.

Explains the effects of the tariff in the world market.

1.6.

Assume that the United States and China are large countries.

1.7.

Make sure you identify the exporter country and the importer country in your graph.

1.8.

You must submit a Word documen