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Grace [21]
2 years ago
9

Suppose that the United States currently imports 1.0 million pairs of shoes from China at $20 each. With a 50 percent tariff, th

e consumer price in the United States is $30. The price of shoes in Mexico is $25. Suppose that as a result of USMCA, the United States imports 1.2 million pairs of shoes from Mexico and none from China.
Required:
What are the gains and losses to U.S consumers, U.S producers, and U.S government and the world as a whole?
Business
1 answer:
hichkok12 [17]2 years ago
6 0

Answer:

Trade situation is a win-win game for US consumers as well as US producers and for all the whole world.

Since China is producing cheaper shoes which means US consumers will be gain from Chinese import at a reduced cost and that will result in higher consumer surplus. But because of the tariff, US consumers are at a disadvantage. Due to free trade agreement between US and Mexico, Chinese producers lost as their is tariff in their product which make it to be uncompetitive.

Explanation:

Looking at the difference between importation cost from both Mexico and China,

I.e Consumer Price of Mexican shoes - Consumer Price of Chinese Shoes = $30 - $25 = $5

Which means US consumers are paying $5 extra for Mexican import than Chinese import without tariff

For Chinese product

With the tariff, US consumers were paying ( 1 million * $10 ) = $10 million

Net consumer surplus is -$10 million USD.

For Mexican product

1.2 million * $5 = $6 million

Net Gain

$10 million - $6 million = $4 million.

The Net losses for US Sellers is $6 million

US government is losing all its tariff because of the free trade agreement resulting from Mexican import

1 million * $10 = 10 million

Trade situation is a win-win game for US consumers as well as US producers and for all the whole world.

Since China is producing cheaper shoes which means US consumers will be gain from Chinese import at a reduced cost and that will result in higher consumer surplus. But because of the tariff, US consumers are at a disadvantage. Due to free trade agreement between US and Mexico, Chinese producers lost as their is tariff in their product which make it to be uncompetitive.

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. Which of the following is not a way business markets and consumer markets differ?
Nataliya [291]

<em>The nature of the buying unit is not a way business markets and consumer markets differ</em>

<u>Answer:</u><u><em> </em></u><em>the nature of the buying unit</em>

<u>Explanation:</u>

Consumer market is basically a market that is Business to Consumer whereas a business market is mainly B2B market.

Most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct mail efforts and trade journals It can be seen that it is due to the market structure and demand. the nature of the buying unit is not a way to differentiate.

6 0
3 years ago
Llcs are mainly capitalized via _______ or through the sale of _______ ownership in the llc itself. (choose two correct answers)
Aleksandr [31]

Llcs are mainly capitalized via Equity or through the sale of Debts ownership in the llc itself.

What is Equity?

Equity is the sum of money invested in or owned by a company's owner. The difference between a firm's obligations and assets on its balance sheet indicates how much equity the company has. The equity value is calculated using the share price or a value established by valuation specialists or investors.

Therefore,

Llcs are mainly capitalized via Equity or through the sale of Debts ownership in the llc itself.

To learn more about equity from the given link:

brainly.com/question/1957305

6 0
2 years ago
Juan argued that bluegrass is the best food for cattle in the Midwest. Sammy objected by citing how the authorities at the U.S.
seropon [69]

Answer:

committed the fallacy of avoiding the issue.

Explanation:

The fallacy of avoiding the issue is also called the fallacy of irelevant conclusion or a red herring.

It occurs when an individual avoids dealing with an issue that he has a problem with.

In the given scenario the issue is whether bluegrass is better than Alfa Alfa for cattle in the Midwest.

Instead of Juan to address the issue he is arguing that the U.S. Department of Agriculture is a bloated bureaucracy with too much fat that deserves to be cut in the next federal budget bill.

He is not addressing the main issue

8 0
3 years ago
Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: D
olasank [31]

Answer:

$25,000 increase

Explanation:

Cost of Manufacturing                                                           Amount

Direct Materials                                                                    $150,000.00

Direct Labor                                                                          $240,000.00

Inspecting products                            60,000 x 0.90              $54,000.00

Providing Power                       30,000 x 0.90                      $27,000.00

Providing Supervision           40000 x 0.60                              $24,000.00

Setting up Equipment                    60000 x 0.50              $30,000.00

Moving Materials                           20,000 x 0.50               $10,000.00

Total                                                                                    $535,000.00

Buying Cost                                  (20000 x 25.50)             $510,000.00

Incremental Saving by Purchase ( $535000-$510000)      $25,000.00

3 0
3 years ago
Students will write a thorough explanation of the impact of price ceilings would have on the field of medicine in the United Sta
melisa1 [442]

Answer: Price ceilings are beneficial to society, and are often necessary, in that they make sure that essential goods are financially accessible to the average person, at least in the short run. By lowering costs, price ceilings also have the beneficial effect of helping to stimulate demand, which can contribute to the health of an economy.

However, there can also be downsides to price ceilings. While they stimulate demand, price ceilings can also cause shortages. Where the ceiling is set, there is more demand than at the equilibrium price. This means that the amount of the good or service supplied is less than the quantity demanded.

For example: in agriculture, medicine, and education, many governments set maximum prices to make the needed goods or services more affordable. Producers may respond to such an economic situation by rationing supplies, decreasing production levels or lowering the quality of production, making the consumer pay extra for otherwise free elements of the good (features, options, etc.), and more.

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