Question: Table 10-3? What is the equilibrium solution to the game if governments formulate policy in this way? Would they ever choose the strategy of protectionism?

Table 10-3? What is the equilibrium solution to the game if governments formulate policy in this way? Would they ever choose the strategy of protectionism? 9. Norway banned the imports of agricultural biotech products and developed extremely restrictive policies for crops derived from agricultural biotech, which are not related to the protection of health, food safety, or the environment. These policies are made to protect domestic agricultural interests, as Norway cares a lot about rural employment and subsidizes small farms to help them remain competi- tive with imported goods. Comment on this trade policy approach. RTHER READINGS W. Max Corden. Trade Policy and Economic Welfare. Oxford: Clarendon Press, 1974. The classic survey of economic arguments for and against protection. I. M. Destler. American Trade Politics, 4th edition. Washington, D.C.: Peterson Institute for International Economics, 2005. A comprehensive portrait of the real-world process of trade policy making, and its evolution over time. Gene M. Grossman and Elhanan Helpman. Interest Groups and Trade Policy. Princeton: Princeton University Press, 2002. A collection of papers and case studies on modern political economy models of trade policy
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