International Trade and Import Tariffs

Satisfactory Essays
1. Who benefits from the government policies to (a) promote production of ethanol and (b) place tariff barriers on imports of sugar cane? Who suffers as a result of these policies?
ANS: Benefiters in promoting production of ethanol:
-Corn producers. They get subsidies from the government and get a free way of marketing from the government. The government promotes consumption of ethanol, ethanol is produced out of corn, so indirect marketing for corn farmers that will get more demand out of policies that promote ethanol.
-Ethanol sellers.
-People all around the world. As to be seen in the direction of global warming, you can say that using ethanol is better. But using ethanol leads to increasing food prices. So there is a negative and a positive side.
-Businesses. If farmers get subsidies from the government they can lower their price. If farmers lower their price, the production to produce ethanol becomes cheaper thus making ethanol cheaper. Businesses that use ethanol will have a cheaper price, reducing costs and increasing profits.
-The Government. In a democratic society we are seeing right now that a lot of people go green. When going green the government is trying to let you know that he cares about the world and he wants to make it better. It is a win win situation because there are no people in our opinion that are opposed in going green, but they are a lot of followers and possible followers that support an environmental friendly world.
Benefiters in placing tariff barriers on imports of sugar cane:
-The Government. They get all the money out of these tariffs.
Sufferers as a result of these policies:
-Countries that produce sugar for a living. Profit goes dramatically down when talking about a 25 to 50% import tariff.
-Countries that set import tariffs for sugar. Countries that produce sugar can have put import tariffs themselves as protection against the country that has an import tariff on them. And countries that produce sugar can

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