Question

4. Tariffs reduce the volume of imports. Do tariffs also reduce the volume of exports? Explain your answer. `

5. Suppose that the comparative-cost ratios of two products-mangoes and sardines-are as follows in the hypothetical nations of Mangolia and Sardinia. Mangolia: 1mango = 2 cans of sardines Sardinia: 1 mango = 4 cans of sardines In what product should each nation specialize Explain why the terms of trade of 1 mango = 3 cans of sardines would be acceptable to both nations.

Answer 1

As per HOMEWORKLIB RULES first question is answered

Kindly ask rest of the questions in a separate post

4.

Tariffs are taxes imposed on foreign imports so as to discourage imports and encourage domestic consumption by consumers.

Since it is a tax on imports, the effect of tariffs on home country exports will be a fall in exports by some amount as most of the domestic production would now be consumed by domestic consumers and little would be left for exports. Thus, exports might fall a Little in the short run but might pick up in the long run as producers start producing more.