Answer to Question #92263 in Macroeconomics for ROTENDA

Question

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

Answer 1

The local market for frozen chicken leg quarters would increase. People would be willing to purchase the frozen chicken leg quarters from the domestic market. This would happen since the imports from Brazil would be more expensive than the locally available ones (Stern, 2017). Eventually, this would be an advantage for the local sellers since their products would be affordable to the people and thus they would make high sales.

Reference

Stern, R. M. (2017). Globalization and international trade policies. Hackensack, NJ: World Scientific.