Assignment ContentPromoting international trade is not a zero-sum game. It is a win-win proposition; both parties gain from trade.Consider the following:Tariffs are paid by the citizens of the country imposing tariffs, not by the citizens of the country producing the products upon which the tariffs are levied.The term “trade deficits” is a misnomer. Every country’s trade is always in balance.Trade deficits do not mean the US no longer produces anything to export. The US is the world’s second largest manufacturer and the world’s second largest exporter of manufactured goods.Trade deficits reflect a strong economy. Trade deficits rise during economic expansions and fall during economic contractions. Unemployment falls as trade deficits rise and rises as trade deficits fall.Imports and exports are complements, not competitors. Both are necessary and both contribute to economic growth.Roughly one-third of all US imports and exports is trade between US multinational companies and their overseas subsidiaries.Foreign-owned companies operating in the US number in the thousands and provide directly or indirectly jobs for more than 13 million US workers (roughly, 10% of the US workforce).US trade deficit in goods in 2018 (as a % of GDP) was the same as it was 5, 10 and 15 years earlier.The rise in US goods trade deficit with China has not increased the US total goods trade deficit. It has been offset by reduced goods imports from other trading partners.There is a strong correlation between the rise in world trade and:The rise in world GDPThe dramatic fall in the world’s extreme poverty rateThe rise in world life expectancyFor every US manufacturing job lost to trade between 2000 and 2010, seven US jobs were lost to domestic productivity improvements. Those seven jobs cannot be brought back from overseas because they never left the US.Write a 700- to 1,050-word evaluation of credible economists’ unbiased opinions on the benefits, costs, and results of current US trade and tariff policies. Complete the following in your evaluation:Evaluate how US trade policy changes in the last 2 years affect global trade activities by multinational corporations.Discuss credible economists’ opinions on the long-term effects of trade and tariff policies changes in the last 2 years.Explain the effect of recent changes to trade and tariff policies have had on your employer, you, or someone you know.Cite at least 2 academically credible sources.Format your assignment according to APA guidelines.Submit your assignment.

Case Study When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving. Consider a person 25 years’ old who is considering saving $1,000. If he puts this money in a savings account that earns 8 percent and leaves it there, he would have $21,720 when he retires at age 65. Yet if the government taxes one-fourth of his interest income each year, the effective interest rate is only 6 percent. After 40 years of earning 6 percent, the $1,000 grows to only $10,290, less than half of what it would have been without taxation. Thus, because interest income is taxed, saving is much less attractive. Some economists advocate eliminating the current tax system’s disincentive toward saving by changing the basis of taxation. Rather than taxing the amount of income that people earn, the government could tax the amount that people spend.Q1: What should be taxed - Personal Income or Personal Consumption and why? Provide your opinion based on the case given below. (200 words)[2.5 Marks]Q2: How may it affect Saudi Economy if an income tax is imposed in KSA?(200 words)[2.5 Marks]

Used Car Regression AnalysisUse the UsedCars2.xlsx dataset on Canvas to answer the following questions. This dataset represents characteristics of cars that are currently part of the inventory at a used car dealership. The variables included are car, year, age, price ($), mileage, power (hp), fuel (mph), region of origin (manufactured in USA or elsewhere), and single ownership (yes = owned by one owner, no = owned by more than one owner).The dealership owner thinks that age, mileage, MPG and origin region may affect car price and would like to use these car characteristics to predict car price. 1. Write out the population model for the analysis described above, and estimate this population model using the sample data. 2. Interpret the estimated coefficient on age.3. Suppose the dealership thinks the effect of car age on price depends on origin region. How would you include this in your model? Based on the new estimated model, does it appear the effect of age depends on origin region? 4. Based on your estimated regression equation, which variables should be included in the estimated model? Which should be excluded? (Hint: Think about which variables are statistically significant and which are not.)5. Is the overall regression statistically significant? 6. Do you think this is a good model for predicting car price? Why or why not?