(Solved): Questions from Chapter 10: 1. "For a small country like the Philippines, a move to free trade would ...

Questions from Chapter 10: 1. "For a small country like the Philippines, a move to free trade would have huge advantages. It would let consumers and producers make their choices based on the real costs of goods, not artificial prices determined by government policy; it would allow escape from the confines of a narrow domestic market; it would open new horizons for entrepreneurship; and, most important, it would help to clean up domestic politics." Separate and identify the arguments for free trade in this statement. 2. Which of the following are potentially valid arguments for tariffs or export subsidies, and which are not? Explain your answers. a. "Dairy producers earning in Wales are at their lowest peak despite an overall rise in farm business incomes." b. "The more ecologically certified foods European Union requires, the higher the price of these products will be on common market." c. "US soybean exports to China and India don't just mean increased wealth for farmersthey mean increased wealth for everyone in the value chain." d. "The PET industry continued to sustain U.S. recycling programs; this shows the strength of the PET recycling market in the face of significant global economic slowdown and a drop in virgin feedstock prices." e. "The price of coal has been stable, but the production dropped 10.3 percent, and workers have been forced to look for other jobs."