文档介绍：Chapter 8
The Instruments of Trade Policy
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Introduction
Basic Tariff Analysis
Costs and Benefits of a Tariff
Other Instruments of Trade Policy
The Effects of Trade Policy: A Summary
Summary
Appendix I: Tariff Analysis in General Equilibrium
Appendix II: Tariffs and Import Quotas in the Presence of Monopoly
anization
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Introduction
This chapter is focused on the following questions:
What are the effects of various trade policy instruments?
Who will benefit and who will lose from these trade policy instruments?
What are the costs and benefits of protection?
Will the benefits outweigh the costs?
What should a nation’s trade policy be?
For example, should the United States use a tariff or an import quota to protect its automobile industry petition from Japan and South Korea?
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Classification mercial Policy Instruments
Introduction
Commercial Policy Instruments
Trade Contraction
Trade Expansion
Tariff
Export tax
Import quota
Voluntary Export Restraint (VER)
Import subsidy
Export subsidy
Voluntary Import Expansion (VIE)
Price
Quantity
Price
Quantity
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Basic Tariff Analysis
Tariffs can be classified as:
Specific tariffs
Taxes that are levied as a fixed charge for each unit of goods imported
Example: A specific tariff of $10 on each imported bicycle with an international price of $100 means that customs officials collect the fixed sum of $10.
Ad valorem tariffs
Taxes that are levied as a fraction of the value of the imported goods
Example: A 20% ad valorem tariff on bicycles generates a $20 payment on each $100 imported bicycle.
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pound duty (tariff) is bination of an ad valorem and a specific tariff.
Modern governments usually prefer to protect domestic industries through a variety of nontariff barriers, such as:
Import quotas
Limit the quantity of imports
Export restraints
Limit the quantity of exports
Basic Tariff Analysis
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Supply, Demand, and Trade in a Single Industry
Suppose that there are two countries (Home and Foreign).
Both countri