Golabal Economy

1-Given the economic growth and development of the Chinese economy, What

type of economic environment appears to be best for developing countries 

seeking to promote their own growth and development through engagement 

in the global economy?


2-What is the difference between a nominal tariff and an effective tariff? What

is the usefulness of the concept of effective protection? How is the rate of 

effective protection measured?


3-What is meant by capital-abundant nation? What types of goods and services 

would you expect such a country to specialize in exporting?  How do US 

exports reflect the forego


4-5. Graph the supply and demand of a good that is produced domestically and 

imported. Assume that the country is not large enough to affect the world 

price. Illustrate the effects that a tariff on imports has. Discuss the following: 

a) Income distribution effects 

b) Resource allocation effects 

c) Domestic production and consumption effects 

d) Government revenue effects 

e) Price of the good effects

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