BUS 731 Global Economics and Business Initiatives

Activity Please solve the below problem and graphs. Information on book chapter (source 1) is attached. Please also include quote or info from a second source. Home imposes a specific tariff of 0.5 on wheat imports. Determine and graph the effects of the tariff on the following: ? The price of wheat in each country ? The quantity of wheat supplied and demanded in each country ? The volume of trade. Determine the effect of the tariff on the welfare of each of the following groups: ? Home import-competing producers ? Home consumers ? The Home government. Show graphically and calculate the terms of trade gain, the efficiency loss, and the total effect on welfare of the tariff (Chapter 9 – Krugman, P. R., Obstfeld, M., & Melitz, M. (2018). International economics, Theory and policy (11th ed.) Pearson Print)

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