Chapter 6 Notes

Chapter 6 Notes - Mos1020AFall2009RaymondLeduc ReadingNotes

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Mos 1020A – Fall 2009 – Raymond Leduc Reading Notes GLOBAL BUSINESS TODAY 2 nd  Edition, CHAPTER 6 – INSTRUMENTS OF TRADE POLICY     1.  TARRIFS tariff  – a tax levied on imports o specific tariffs  – levied as a fixed charge for each unit of good imported E.g. $3.00/barrel of oil o Ad valorem tariffs – levied as a proportion of the value of the imported good E.g. the tariff that the EU has imposed on imports of bananas from Latin America  (15-20% on the first 2.5 million tones) Who suffers from tariffs and who gains? o Government gains   higher revenues o Domestic producers gain   tariffs afford them protection against foreign competitors  by increasing the cost of imported foreign goods o Consumers lose   they have to pay more for foreign imports E.g. the U.S.-imposed tariff on Canadian softwood lumber hurts homebuyers 
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This note was uploaded on 03/22/2010 for the course MOS 1020 taught by Professor Leduc during the Fall '09 term at UWO.

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Chapter 6 Notes - Mos1020AFall2009RaymondLeduc ReadingNotes

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