Tariff on Chinese Solar Panels

2b. The tax policy could have a better effect on the American worker by keeping the products that are being made competitive with the foreign products. If there is a higher tax on the foreign product then some consumers may opt to purchase American made products if the price is comparable. The tariff could impact the Asian worker negatively. It could reduce the amount of jobs in that particular product.

Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

The Supply and Demand Simulation consist of microeconomics and macroeconomics concepts. The concepts are explained and how they apply to the principle of microeconomics and macroeconomics. The simulations presents shifts in the supply and demand curve, the rationale for the shift is given. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making for the company presented. An explanation of the price elasticity affects the pricing strategy for consumers and company.

There are advantages and disadvantages for different stakeholders in the implementation of tariff to China. Germany and other EU countries’ solar panels producers will benefit from tariff as they will receive higher price and produce larger quantity of solar panels, which is the reason why SolarWorld is eager to get EU to impose tariff on China. On the other hand, the Chinese producers will be the loser in this scenario, as they will be exporting smaller quantity at lower price. Their revenue also decreases since they have to pay tariffs to the government of EU countries. Consumers of EU countries will also be afflicted by tariff, as they will pay solar panels at higher price. There is also dead-weight loss of welfare due to the loss of consumer surplus. This is a consequence of Q4Q2 (Figure 2) amount of solar panels not demanded and consumers keeping an amount of ‘a’ that they would have spent on the solar panels. This results in loss of consumer surplus, represented by area ‘b’, because the solar panels are not purchased. Furthermore, Q1Q3 amount of solar panels are produced by relatively inefficient European producers, compared to the more efficient Chinese producers. The misallocation of resources distorts the law of comparative advantage, which states that a country has a comparative advantage if it can produce the good at lower opportunity cost than other country. The

This recent tax on Chinese solar panel imports has been set in order to protect Canadian domestic manufacturers of solar panels from competition against the Chinese imports with substantially more cheaper prices.

Tens of thousands of Americans could lose jobs following President Trump’s decision to slap hefty tariffs on imports of those products from other countries. The U.S has been in great debt lately and Donald Trump has decided to do something about it. Trump has approved to impose tariffs of up to 50% on imported washing machines and solar panels. The move came after a petition was filed by Whirlpool, a U.S.-based washing machine manufacturer facing tough competition from LG Electronics and Samsung, both based in South Korea. Trump's actions are in line with his "America first" campaign pledge, but tariffs may not have the desired effect. The main goal of the tariff is to level the playing field for the American company, which has

Although tariffs usually cause domestic prices to increase they can have a positive effect on our economy and specifically our domestic producers of steel and their employees. The US trade policy has historically been protectionist in nature, and congress, the principle body of power for import policy, heavily favored domestic firms over their foreign competitors (Irwin 146). As a result, domestic steel producers have had tariffs and quotas in place for many years. An effective tariff raises revenue for our US government and can help to subsidize domestic production at the expense of foreign producers. This is good because the American government receives money from foreign exporters that it would not have otherwise had access to. This money can then be used in domestic government policies and could

As a source of income, 2. To protect domestic industries since Imported goods will price higher if tariffs exist. For the exporters, these tariffs will as a barrier on their export since the cost of exporting will increase. In other words, the tariffs were repealed under CEPA will bring advantages to Hong Kong. Under the economic theory and economic model, if a country (China) repealed their tariffs, the price of its imported good will decrease and imported quantity will increase, which bring (economic) advantages on the exporter (Hong Kong) since its export will

One problem that trade barriers have caused is that they increase the cost of enterprises, affecting the international competitiveness of enterprises. For a long time, due to the low technological content of Chinese export products, mainly to win international markets at low prices, the developed countries have adopted some ways, such as the green subsidy system, the green packaging system, the green fortress and so on. By imposing import surcharges, increasing the cost of

Tariffs overall are pro-producer and anti-consumer which is why the United States are making these destructive proposals, they are all to provide security and self-help. Consequently, through realism the zero-sum game would likely aid the United States and the United states only with their economic gains.

Economic policy of nations and states, tariffs are tools used to control the flow of goods, services and resources being brought into the country. The overall purpose is to create security for the domestic industry from the imported product. These products can sometimes be less expensive to purchase than the goods being manufactured in the local economy. (McEachern, 2015) The government does this either stimulate or deflate trade with other countries. (Fontinelle, 2012)

This assessment will be an analysis of graphed data and changes in supply and demand for three economic problems. Problem A involves production possibilities for consumer and capital goods, problem B is an evaluation of changes in supply and demand equilibrium, and finally, problem C involves pricing with relevance to supply and demand. Successful completion of this assessment demonstrates proficiency in; applying theories, models, and practices of economic theory, analyzing solutions with support from relevant data, resources, references, and economic principles, analyzing graphed and circular

Studies have shown that 88% of americans believe in good environmental impact on the earth. However, 52% of the surveyed believe that government subsidization will help protect environmental services such as selling organic food or using solar panels for energy instead of electricity (Franchise Help). Solar energy is being adopted by businesses like Target who operates over ten projects to conserve energy and reduce waste. The solar program of Target has generated over 15- 30% of the power in their stores and plan to have an estimate of five hundred roof top panels by the year 2020 (Target). Although solar energy is expensive and risky, in fact businesses going solar will save money and increase media response.

Energy is a critical component for every economy and society around the world. Energy is divided into two groups, nonrenewable (coal, oil, natural gas, and nuclear) with a finite amount found around the globe and renewable (hydro, tidal, solar, wind, geothermal, and biomass) that are constantly being replenished so that they will never run out (Green Energy Choice, 2011). The international economic impact of renewable energy is explored by examining subsidies, strategic policies, and comparative advantage of renewable energy.

Short-term Effects US suppliers are now better able to compete with the imports, ensuring a more efficient employment of US resources. Revenue from the tariff can also be channelled into other areas of the economy like healthcare and infrastructure. Long-term Effects Aluminium extrusions are often used as input components in products such as electronics and construction. As input prices rise, so do production costs, ceteris paribus. Higher production costs are ultimately borne by U.S. consumers as their real income and purchasing power decrease causing less people to be willing and able to purchase these products. Revenue collected from the tariff may be insufficient to offset these costs. Further Analysis If the US government does not impose the tariff, the lower production costs would benefit the U.S. economy. Real income and purchasing power in the U.S. economy would increase. Additionally, the products manufactured could be exported and sold back to China for a profit. Not imposing the tariff would also force the US aluminium industry to innovate and thus, lower its production costs. This would make