1. If you had the power to eliminate tariffs on sugar cane and subsidies on biof
ID: 1253213 • Letter: 1
Question
1. If you had the power to eliminate tariffs on sugar cane and subsidies on biofuels, would you do it? Why or why not? Would you consider this an ethical stance, why or why not?2. Regarding your answer to question #1, what would be the impact on the U.S. and on other producing countries?
3. What are the pros and cons of free trade and globalization of production?
I am in need of an expert who understands Global Business. I keep changing my opinion(s), therefore having a hard time writing out an argument/paper on these questions. Your help is very much needed and very much appreciated.
Explanation / Answer
1. Yes because I am a consumer of sugar cane and prefer sodas that use sugar rather than corn syrup. The tariff on sugar decreases consumer surplus by keeping the price higher than it would be with free trade. This is an ethical stance because consumer surplus would increase from eliminating the tariff more than producer surplus would decrease. Using utilitarian ethics, this is an ethical stance. Alternatively, we could say that we oppose this policy if we were domestic sugar producers. And that could either be unethical using utilitarian ethics or ethical using Rawlsian ethics. Using Rawlsian ethics, something is ethical only if it makes the worst-off person better off. If producer surplus is less than consumer surplus, then we should favor the tariff on sugar because it makes producers better off. 2. The price of sugar would fall and imports would increase. This would benefit consumers of sugar and foreign producers of sugar. It would harm domestic producers. 3. The pros of free trade are that consumers and foreign exporters benefit. The harm is that domestic producers are harmed because they have to compete with low-price foreign exporters.
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