What response to such a policy would you expect from industries (like textile producers) that use U.S. cotton?

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Economics

Description

Suppose that the world price for cotton is below the U.S. domestic price but the government requires that all cotton used in the United States be domestically produced. What response to such a policy would you expect from industries (like textile producers) that use U.S. cotton?

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Explanation & Answer

Attached.

Running Head: POLICY RESPONSE

1

Policy Response
Institution Affiliation
Date:

POLICY RESPONSE

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In most cases, the government through the policymakers creates some laws that direct
different industries to follow a certain strict policy in conducting their activities. Such policies
are necessary in order to grow the local or domestic economy and ensure that the government
supports a certain course. However, some of the policies might go against the expectation of t...


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