Presumably, since the United States is a large country in many of ...

[brutforce]

Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country.
 
  It follows therefore that when any legislator or government official who promotes zero-tariff free trade policies, is by definition not acting in the public's best interest. Discuss.

Question 2

Interest rate parity holds well in the Eurocurrency market.
 
  Indicate whether the statement is true or false

[adammoses97]

Answer to Question 1

Technically this is true. However, this is true only within the context of a generally myopic view of international relations. If the tariff imposing country is large enough to make a substantial difference in its welfare by seeking an optimum tariff, then it cannot hope to remain invisible, as its policies are substantially harming its trade partners. Foreign repercussions are almost a certainty. In such a game it is not at all certain that seeking the optimum tariff dominates alternative strategies.

Answer to Question 2

TRUE
Explanation: There is no political risk or government controls. The only difference is currency of denomination.

[brutforce]

Thank you

[adammoses97]

No problemo