Example6answer - ECON460001and002,Fall2010...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 460 -001 and 002, Fall 2010 Example 6 – Some important concepts on Interventionist Trade Policies Chapter 15: Pages 319-343 Argument Trade policy  Policy as per “Specificity  Principle” Source of Government  Revenues Taxes and Tariffs Broaden Tax base National Defense  Tariffs and Quotas Production Subsidy (prohibitive tariff if foreign  goods have to completely  restricted) Improve Trade Balance Tariffs and Quotas Y=C+I+G+NX Reduce C or increase Y. Currency depreciation if Y is  not at full employment  The TOT argument Tariffs If TOT is the main argument,  then this is the best policy. Decrease Unemployment Tariffs and Quotas to restrict  imports Use fiscal and monetary policy  to increase output and  employment. Increase employment in a  specific industry Tariffs and Quotas Production Subsidy Tariff to Benefit a Scarce  Factor of Production. Tariffs and Quotas
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/24/2010 for the course ECON 460 taught by Professor Staff during the Fall '08 term at UNC.

Page1 / 2

Example6answer - ECON460001and002,Fall2010...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online