Answer to Question #91680 in Macroeconomics for Unknown287159

Question

1. Who would benefit and who would lose if the South African government doubled the tarriff on imported frozen chicken leg quarters from Brazil? Explain.

Answer 1

If the South African government doubled the tariff on imported frozen chicken leg quarters from Brazil, South Africa would benefit. The policy would raise the price of chicken legs imported from Brazil. The government would gain more revenue from the importation of the goods. The move would also help protect domestic producers from unhealthy external competition from Brazilian producers. In addition, the move would be critical in reducing importation, and thus boosting the country’s balance of trade. Hence, the policy would be beneficial to the South African economy.