ch05tariffs(國際經(jīng)濟(jì)學(xué)浙江林學(xué)院,岑麗娟)

1、International EconomicsBy Robert J. Carbaugh8th EditionChapter 5:TariffsWhy restrict trade?Benefits of free trade come in the long term, and are usually spread widely across societyCosts of free trade are felt rapidly and are usually concentrated in specific sectors of the economyTariffs2Defining ta

2、riffsA tariff is a tax (duty) levied on products as they move between nationsImport tariff - levied on importsExport tariff - levied on exported goods as they leave the countryProtective tariff - designed to insulate domestic producers from competitionRevenue tariff - intended to raise funds for the

3、 government (no longer important in industrial countries)Tariffs3Types of tariffSpecific tariffFixed monetary fee per unit of the productAd valorem tariffLevied as a percentage of the value of the productCompound tariffA combination of the above, often levied on finished goods whose components are a

4、lso subject to tariff if imported separatelyTariffs4Effective rate of protectionThe impact of a tariff is often different from its stated amountThe effective tariff rate measures the total increase in domestic production that the tariff makes possible, compared to free tradeTariffs5Effective rate of

5、 protection (contd)When tariff rates are low on raw materials and components, but high on finished goods, the effective tariff rate on finished goods is actually much higher than it appears from the nominal rateThis is referred to as tariff escalationTariffs6Avoiding and postponing tariffs (US)Produ

6、ction sharing and special treatment for foreign assemblyBonded warehousesForeign trade zonesTariffs7Tariff welfare effectsConsumer surplusThe difference between the price buyers would be willing to pay and what they actually payProducer surplusThe revenue producers receive above the minimum amount r

7、equired to induce them to produce a goodTariffs8Consumer and producer surplusTariffs9Tariff trade and welfare effectsWelfare effects of tariffs10Tariff trade and welfare effectsWelfare effects of tariffs11Who pays for import restrictions?Domestic consumers face increased costsLow income consumers ar

8、e especially hurt by tariffs on low-cost importsOverall net loss for the economy (deadweight loss)Export industries face higher costs for inputsCost of living increasesOther nations may retaliate, further restricting tradeTariff effects12Arguments for trade restrictionsJob protectionProtect against

9、cheap foreign laborFairness in trade - level playing fieldProtect domestic standard of livingEqualization of production costsInfant-industry protectionPolitical and social reasonsReasons for tariffs13Politics of protectionism“Supply” of protectionism (trade policy) depends on:the cost to society of

10、restricting tradethe political importance of the import-competing industriesMagnitude of the adjustment costs from free tradePublic sympathy for those sectors hurt by free tradeReasons for tariffs14Politics of protectionism“Demand” for protectionism depends on:The amount of the import-competing industrys comparative