Impossibility of Importance of Dairy Products in the United States

Running head: ECONOMICS ASSIGNMENT
Economics assignment
Name of the student
Name of the university
Author note

World supply
World supply plus tariff
Q1 Q2 Q3 Q4
Pt
P
ECONOMICS ASSIGNMENT
Answer 1)
The problem states that Canada limits the imports of the dairy products so that it is not
more than 10% of the domestic consumption. The main goal of the NAFTA is to remove
barriers among United States, Mexico and Canada. The revised version of NAFTA states that
the imports will rise to higher levels of the domestic consumption. When more imports will
be allowed, the consumers will be gaining as they will be provided with more variety of dairy
products. As a result of higher imported goods, consumers will be gaining more. The answer
is uncertain because though with the increase in the dairy imports, the consumer may gain
due to the elimination of trade barriers, the domestic producers may suffer a loss
Answer 2)
Huge amount of deportation in the United States are generally costly and will hurt the
economy. When the immigrants are sent away, the employers need to hire new people in
place of them. When the immigrants will be removed, it will lead to decrease in the labor
force and the Mexican GDP will decrease and will get cut by $1.6 trillion. In general, when
migration increases, the wage will decrease. So, when the immigrants are removed the wage
for workers in Mexico will increase. This will also lead to increase in the income of the
employers. Due to deportation (a) the wages for the workers of Mexico will increase. (b)
income of the employers might also increase. (C) the Mexican GDP will decrease and will
get cut by $1.6 trillion.
Answer 3)
Figure 1 Impact of tariffs on importing countries