Economics: The Basics 1st Edition by Mike Mandel

Exercise 5

Suppose that Chinese manufacturers develop the ability to build a good car that costs only $5,000. They start shipping it to the United States.
a) Identify some people or businesses in the United States who might benefit from these imports (the potential "winners"). What kind of benefits do they get?
b) Identify some people or businesses who might be hurt by these imports (the potential "losers"). What kind of losses do they face?
c) This chapter identifies four possible arguments for protectionism. List them, and explain why they do or don't justify restricting imports of inexpensive automobiles from China.