Tiêu đề Đề final K59 (Chỉ Tự luận) - Thanh lam the nay dc 9d thoi.docx ✅

Question 2: Governments intervene in trade to + Protect infant industries from fierce competition. This matter is especially important to the industries in developing countries who might not survive up against larger nations. Tariffs and other forms of government intervention are often used to protect newly founded, local businesses from an already established international competition that may be selling similar products for lower prices. These tariffs encourage customers to support local businesses and give new businesses the time and opportunity to get their business off the ground. Without tariffs on international goods, many startups in the UK would fail entirely, and unemployment would surely increase. + Nation defense: governments make an effort to protect their own sectors of the economy that provide services critical to national defense and security. Some obvious examples would include weapons, advanced electronics, aerospace, and strategic minerals. + Protect environment: governments may implement tariffs on certain products that they feel are harmful to the environment or do not adhere to specific environmental standards + Employment rates: No country wants to see its unemployment rates rise as it will raise levels of crime as well as general dissatisfaction. Governments should focus on creating an environment that maintains high levels of employment, as well as new employment opportunities being offered all the time. This keeps the economy healthy and promotes economic growth. + Consumer safety + Medical drugs Cách giải thích trên mạng: a. Why governments intervene in trade: - Governments intervene in markets to address inefficiency. In inefficient markets; some may have too much of a resource while others do not have enough. The government tries to combat these inequities through regulation, taxation, and subsidies. - Governments also intervene to minimize the damage caused by naturally occurring economic events. Recessions and inflation are part of the natural business cycle but can have a devastating effect on citizens. In these cases, governments intervene through subsidies and manipulation of the money supply to minimize the harsh impact of economic forces on its constituents. - Governments may also intervene in markets to promote general economic fairness. Governments often try, through taxation and welfare programs, to reallocate financial resources from the wealthy to those that are most in need. b. Critically evaluate the infant industry argument of protection: - The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale.
Question 3: giống đề dưới Exchange rate is the price of one currency in terms of another The State Bank will intervene in the foreign exchange market with the goal of stabilizing the exchange rate and controlling inflation, in line with the general objectives of monetary policy. Question 4: Question 2:
- Definition: An import tariff is a duty on the imported commodity. - Analyze the impact of an import tariff imposed by a small nation: 1. Whenever a small country implements a tariff, national welfare falls. 2. The higher the tariff is set, the larger will be the loss in national welfare. 3. The tariff causes a redistribution of income. Producers and the recipients of government spending gain, while consumers lose. 4. Because the country is assumed to be small, the tariff has no effect on the price in the rest of the world; therefore, there are no welfare changes for producers or consumers there. Even though imports are reduced, the related reduction in exports by the rest of the world is assumed to be too small to have a noticeable impact. Question 3 (bài report ● Exchange rate: - Def: An exchange rate is the value of a nation's currency in terms of another currency of another nation or economic zone. Exchange rate specifies the rate at which one currency can be exchanged for another. - Example: For example, if the exchange rate between the U.S. dollar (USD) and the Japanese yen (JPY) is 120 yen per dollar, one U.S. dollar can be exchanged for 120 yen in foreign currency markets. ● Why State Bank of VN intervene in the foreign exchange rate: State Bank of Vietnam (SBV) intervenes in the market when the intervention rate is lower than the current listed exchange rate on a large scale by spot or forward transactions to stabilise the foreign exchange market and the macro-economy. Its policies aimed to maintain stability and control inflation, not seek trade advantage. Question 4 (mục 11.2) 1/ - In country 1, with an hour, it can product 2X or 3Y → to produce 1X, it has the opportunity cost of 3/2Y - In country 2, with an hour, it can product 1X or 3Y → to produce 1X, it has the opportunity cost of 3Y ⇒ Therefore: Country 1 has a comparative advantage in producing X because it has a lower opportunity cost in X Country 1 should export X to Country 2 Country 2 has a comparative advantage in producing Y because it has a lower opportunity cost in Y Country 2 should export Y to Country 1 2/ In country 1: 1X:3/2Y In country 2: 1X:3Y →…. is 3/2Y<X<3Y or 1/3X<Y<2/3X
Question 2: - Definition: 1. (trong sách) A quota is the most important nontariff trade barrier. It is a direct quantitative restriction on the amount of a commodity allowed to be imported or exported.Import quotas can be used to protect a domestic industry, to protect domestic agriculture, and/or for balance-of-payments reasons. 2. (trong slide) Import quota is a direct quantitative restriction on the amount of a commodity allowed to be imported during a specific period of time. - Example: 1. In 2021, only 1000 tons of sugar were allowed to be imported by the Phillip Gov. 2. The United States limits the number of Chinese car imports to 3 million per year. This import quota on foreign car products will help the domestic car manufacturing companies to increase their production and establish their footprint in the United States market with maximum profit. It helps increase the country’s GDP and the wealth of domestic suppliers. - Effects of an import quota imposed by a small nation: When a small nation imposes an import tariff, the domestic price of the importable commodity rises by the full amount of the tariff for individuals in the nation. As a result, domestic production of the importable commodity expands while domestic consumption and imports fall. However, the nation as a whole faces the unchanged world price since the nation itself collects the tariff. These general equilibrium effects of a tariff can be analyzed with the trade models developed in Part One and by assuming that the nation redistributes the tariff revenue fully to its citizens in the form of subsidized public consumption and/or general income tax relief. (Sách trang 216) OR + Whenever a small country implements a quota, national welfare falls. + The more restrictive the quota, the larger will be the loss in national welfare. + The quota causes a redistribution of income. Producers and the recipients of the quota rents gain, while consumers lose. + Because the country is assumed to be small, the quota has no effect on the price in the rest of the world; therefore there are no welfare changes for producers or consumers there. Even though imports are reduced, the related reduction in exports by the rest of the world is assumed to be too small to have a noticeable impact. Question 3: