Question 1

"The potentially valid arguments for tariff protection are also the most easily abused. " What are those arguments?Why are they susceptible to abuse?Evaluate the use of artificial trade barriers, such as tariffs and import quotas, as a means of achieving and maintaining full employment.

Question 2

What is offshoring of white-collar service jobs, and how does it relate to international trade?Why has it recently increased?Why do you think more than half of all of the offshored jobs have gone to India?

Question 3 (Answer True or False, and then give your reasons.)

1. Evaluate the following statements: Is the statement true or false? And why?
2. Protective tariffs reduce both the imports and the exports of the nation that levies tariffs.
3. The extensive application of protective tariffs destroys the ability of the international market system to allocate resources efficiently.
4. Unemployment in some industries can often be reduced through tariff protection, but by the same token inefficiency typically increases.
5. Foreign firms that "dump" their products onto the American market are in effect providing bargains to the country's citizens.