AEM-ECON%202300%20Lecture%207%20-%20Spring%202011

AEM-ECON%202300%20Lecture%207%20-%20Spring%202011 - 1 of...

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Unformatted text preview: 1 of Lecture 7 Professor David Lee AEM/ECON 2300 Tariffs a tax on imports 2 of Lecture 7 Professor David Lee AEM/ECON 2300 Tariffs a tax on imports Purposes: 1. Raise government revenues 3 of Lecture 7 Professor David Lee AEM/ECON 2300 Tariff revenues as a percentage of government revenues, 2004: selected countries Source: International Monetary Fund, Government Finance Statistics Yearbook 2005 (Washington, DC, 2005) Developing countries percentage Industrial countries percentage The Bahamas 51.2 New Zealand 2.6 Guinea 47.9 Australia 2.5 Ethiopia 33.5 Japan 1.2 Ghana 28.5 Canada 1.2 Sierra Leone 27.6 Switzerland 1.2 Madagascar 26.9 United States 1.1 Dominican Republic 20.9 United Kingdom 1.0 Jordan 11.3 Iceland 1.0 4 of Lecture 7 Professor David Lee AEM/ECON 2300 Tariffs a tax on imports Purposes: 1. Raise government revenues 2. Protect domestic producers 5 of Lecture 7 Professor David Lee AEM/ECON 2300 Tariffs a tax on imports Purposes: 1. Raise government revenues 2. Protect domestic producers 3. Alter trading patterns 6 of Lecture 7 Professor David Lee AEM/ECON 2300 Types of tariffs 1. Specific : fixed amount per unit of product 7 of Lecture 7 Professor David Lee AEM/ECON 2300 Types of tariffs 1. Specific : fixed amount per unit of product 2. Ad valorem : % of product value or price 8 of Lecture 7 Professor David Lee AEM/ECON 2300 Types of tariffs 1. Specific : fixed amount per unit of product 2. Ad valorem : % of product value or price 3. Compound : combination of (1) and (2) 9 of Lecture 7 Professor David Lee AEM/ECON 2300 Current tariff issues 1. Europe thinking about lowering tariffs to deal with high food prices 2. Congressional approval of U.S.-Colombian free trade agreement (signed in 2006)?...
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This note was uploaded on 03/27/2011 for the course AEM 2300 taught by Professor Lee,d.r. during the Spring '06 term at Cornell University (Engineering School).

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