Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 3

* It is often alleged that Japanese producers receive subsidies from their government permitting them to sell their products at a low price in the U.S. market. Do you think we should erect trade barriers to keep out cheap Japanese goods if the source of their low price is a government subsidy? Why or why not?