Homework on trade policy - Assignment Example

of Trade policy The enactment of trade facilitation in the port of a developed nation would ensure the development of the trade ion the ports. The action tends to reduce on the burdens of costs while simultaneously maximizing the efficiency of the transfer of commodities and services in the port. Moreover, the action enables the protection of the legal governing objectives ( The Economist 58)Therefore, the degree of trade facilitation tends to enhance the procedures and the controls that govern the port thus improving the working terms in the business.

Price Supply before Supply after Demand Quantity The competition that India poses against France is unhealthy since India enjoys economies of scale. The imports from India will have very low prices in relation to the price of rice in France.

The reduction in price will tend to shut off the market for local rice thus the infant industry in France. The France economy will tend to be dependent on the rice from India. The producers are worse of while the consumers initially are enough off but are subject to risks of food insecurity and lower quality of rice. Price The reduction in price Increase in quantity Quantity The imposition of subsidies in the production of rice in India particularly when it has a low population will tend to raise the amount of rice.

The scenario will change if the population is more in that the supply of rice will tend to exceed the demand. Therefore, the surplus will tend to reduce the price of rice significantly. The increase in supply Original price and quantity Reduction in price and increase in quantity Price Quantity The issuances of lump sum amounts of cash to the farmers will not necessary imply that the funds will be in use in the production of rice.

Therefore, the change in supply will not be significantly different from the amount before the issuance of the funds. The term is unlike the imposition of subsidies. Consumption subsidies tend to encourage consumption thus creating a local market for the rice. The effect will thus tend to level the rice supply with the rice demands in the country. Price original price and quantity Increase in quantity and increase in price due to consumption incentives thus more revenue to farmers Quantity Works CitedThe Economist.

"Bailing out from Bali." The Economist 9th August 2014: pp. 58-59.