has filed a complaint with the World Trade Organization (WTO) over the subsidies provided by China to its textiles and garment sector, according to a statement released by the WTO.
exemption in income tax, value-added taxes and municipal taxes,
Under a series of trade agreements between Mexico and China, all tariffs on Chinese products, including textiles, were gradually reduced to zero by December 2011.
unfair advantage and seriously hurt Mexican textile and garment industry.
Maize is a good, which has many complimentary goods, because it is a staple food in many recipes. This can be shown in a cross price elasticity diagram.
There is high demand for maize, so this good is inelastic and therefore it is smart to place a floor price on this good, since price will increase with little change to the demand.
By setting a price floor, maize prices will increase so that the good is more valued and this will lead to less wasting and more available supply in the long-run.