【正文】
2. Employment: creating “jobs” 3. Level playing fields: “Competition is unfair when petitors have cheaper and better products.” 4. Reducing trade deficits 5. Every one else does it. 6. Hightech bias偏見(jiàn)、傾向 28 ? Valid (but not pelling[k?m39。peli?]令人信服的 ) arguments 1. Government revenue 2. Ine redistribution 3. Optimal tariff 4. Noneconomic goals (., national defense) 5. Infant industry protection 6. Externalities and market failure 7. Environment 8. Imperfectly petitive market: (i) foreign monopoly 9. Imperfectly petitive market: (ii) strategic trade policy. There are cheaper ways to achieve the goals although they may be politically more difficult. Q: Compare a production subsidy and a tariff that have the same production effect. 29 Figure Trade policy and foreign monopoly 30 Figure Price supports and tariffs 31 Payoff Matrix支付矩陣 with no subsidy Airbus P N Boeing P 5 5 100 0 N 0 100 0 0 Airbus P N Boeing P 5 5 100 0 N 0 110 0 0 Payoff Matrix with subsidy of 10 on Airbus 32 ? Figure Welfare effects of a domestic production subsidy