At the end of class today, I asked if there were any instances of quantity floors; and was told by some of you that indeed there are:
- At the market level, nations have minimum-quota agreements. They have to buy a certain amount of a good from another country.
In fact, the extraordinary thing is China is itself trading at a disadvantage - for now. It was omitted from a series of minimum quotas on textile trade imposed in the 1970s to help countries such as Bangladesh and Sri Lanka, but they expire on Dec 31. http://www.telegraph.co.uk/education/3347284/Woman-who-makes-12-billion-socks-a-year.html
- At the individual level…for consumers, there is the requirement to buy insurance (for your car, maybe soon for your health). And for employers and schools, there are or used to be quotas for taking on different types of workers or students:
India's founders began…constitutionally banning untouchability in 1950 and, just as in America, guaranteeing equal treatment under the law for everyone regardless of caste, sex, religion or race. [Later, t]hey created a list or "schedule" of all the dalit sub-castes deserving preferential treatment and handed them 17.5% of the seats in the parliament and state legislatures. They also gave them 22.5% of all public-sector jobs and guaranteed spots in public or publicly funded universities. http://online.wsj.com/article/SB10001424052748703871904575215810722146240.html?mod=wsj_india_main