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After listening to the audio clip WTO sides with U.S. in Poultry Dispute with China, consider the full impact of a restriction on trade such as a tariff. Do trade restrictions evoke retaliation by trade partners, and how would this affect the gains from trade?
The audio clip concerning poultry tariffs imposed by China indicated U.S. chicken exports were reduced by 80%. For paragraph b), discuss if trade restrictions evoke retaliation and provide an example of retaliation by a trading partner. For paragraph c), explain how retaliation to a trade restriction affects the gains from trade (use statistics for before the initial tariff was instituted, right after the tariff was instituted, and right after the retaliation was instituted using
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