Question: (complete question, no missing data or info) Background: Imagine that you work for the World Bank and you have been called to Ghana to aid

(complete question, no missing data or info)

Background:Imagine that you work for the World Bank and you have been called to Ghana to aid the new president to come up with a new international trade strategy.

You are told that the new government is interested in moving away from agriculture and into manufacturing. To do so, the government wants to pursuit a policy of import substitution industrialization (ISI).

You are given a brief about Ghana highlighting the following points:

  • About half of Ghana's population depends on agriculture, but Ghana still imports some of its food.
  • The majority of Ghana's people live in rural areas and exist on a subsistence way of life.
  • Ghana has one of the highest rates of income inequality in the world.
  • Nearly half of the population is employed in agriculture.

Ghana's president's ISI strategy is to ask Switzerland to adopt a voluntary export restraint (VER).

How to draw two graphs showing the effects of VER for each country? What happens to the welfare of Ghana?

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