Podcast:
https://www.tradetalkspodcast.com/podcast/49-are-trumps-steel-quotas-worse-than-his- steel-tariffs/
- How is a tariff different than a quota?
- What is the strictest/tightest quota?
- What are your options if a product already met the quota?
- Which country was mostly affected by the quota on the U.S. steel products?
- Was there a flexibility with regards to a recent steel quota?
- What does it mean to “swing” in the context of a quota?
- What is a part of the problem with a quota?
- The podcast mentions the auction as a way to reduce risks about the meeting the quota limit. From our in-class lecture notes on Tuesday, which area (a, b, c, or d) is associated with the revenue from the auction?
- What would be an example of Voluntary Export Restriction (VER)?
- Why do foreign companies bother exporting steel to the U.S. despite the hassle associated with a quota?
Sample Solution