Question 1: Which government intervention applied in these cases

1. U.S. restricts the number of imported video games from Japan: import quotas
2. U.S. levies a $1 tariff on imported watches: tariffs
3. EU payments to European farmers: subsidies
4. Peru restricts sugar exports by U.S. request: voluntary export restraints
5. Specific percentage of goods must be produced domestically: local content
requirement
6. U.S. stops medicine imports unapproved by FDA: administrative policy
7. EU imposes a special tariff on the offending foreign imports: anti-dumping duties
8. U.S. imposes 2.5 percent tariff on the value of imported car: countervailing duties

Question 2: Political Arguments or Economic Arguments for Government intervention

1. Trump wants to impose high tariffs on China to gain support from voters (economic
arguments)

2. Agriculture sector should be supported so that in case of national emergency or war the
country will have access to key supplies and materials. (economic arguments)

3. Vietnamese government wants to develop car industry to grown strong enough to meet
international competition so they impose different tariffs on imported cars. (Economic
argument)

4. Part of strategic trade policy suggesting that a government can help raise national income
if it can ensure that firms with a first-mover advantage will be domestic. (economic
arguments)

5. In 2003 several countries, including Japan and South Korea, decided to ban imports of
American beef after a single case of mad cow disease was found in Washington State.
(political argument)

6. US imposes sanctions on Iran in response to the Iranian nuclear program. (political

argument)

7. European citizens lobby for greater environmental protections so that only products that
meet high environmental standard can be imported to Europe. (political argument)

8. US started trade war with China to balance trade deficit and to prevent China’s piracy on
US technology. (political argument)

9. The substantial R&D grants that the U.S. government gave Boeing in the 1950s and
1960s probably helped tilt the field of competition in the newly emerging market for
passenger jets in Boeing’s favor. (economic arguments)

10. Obama administration filed with the WTO against Chinese auto parts producers in 2012
because direct subsidies to Chinese producers and currency manipulations caused unfair
competition and as many as 3.4 million U.S. jobs lost.(economic arguments)
11. US imposes sanctions on Myanmar because of the Myanmar government violates
human right of its citizens (political argument)

12. $18 billion subsidy from the governments of Great Britain, France, Germany, and Spain
helped Airbus to break into the airplane market and compete with Boeing (economic
arguments)