Tariff & Quota

5) Quotas: "Quota rents" can be allocated in four possible ways. For each state whether the quota rent is included in the dead weight loss caused by the quota or not and describe why: a) Import Quota Licenses; b)Rent Seeking; c) Auctioning the Quota d) Voluntary Export Restraints 6)  GATT and the WTO: Go to www.wto.org and answer the following questions: a) How many countries signed GATT in 1948 and how many now currently belong to the WTO? b) What was the name of the trade talks that concluded with the replacement of GATT with the WTO? c) (1 pt) Was a deadline set for the latest round of negotiations, i.e., the Doha Round? If so, what is or was the date? d) (1 pt) Does the WTO have any provisions that set health and safety standards for member countries? If so, state any such provision. 7)  Export Taxes: Read the following two articles on Argentina's export taxes http://www.economist.com/node/10925509; http://economic ist.com/blogs/americasview/2014/01/argentinas-wheat-exports and answer the following: a) Initially in 2002, why did the government of Argentina place a tax on farm exports? b) What was the export tax percentage rate in 2002 and what was it when the first article was published in 2008? c) The 2008 article states the following: If they curb food exports, governments may buy short-term relief for consumers—but at the cost of lowering output and domestic incomes and switching resources into producing other things Use the 2014 article, to explain whether this prediction was correct.      

Sample Solution