ch8_stu - Chapter 8 Import Tariffs and Quotas under Perfect...

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1 Chapter 8 Import Tariffs and Quotas under Perfect Competition Three different policies: (a) _______________ (b)_______________ (c) _______________ 8.1 A brief history of WTO (World Trade Organization) Key provisions of the GATT 1. ____________________ 2. ____________________ 3. ____________________ 4. ____________________ 5. ____________________ 6. ____________________
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2 8.2 The gains from trade 1. Review: Consumer and producer surplus 2. Home welfare (a) No trade Home welfare: CS+PS, a+b+c (b)Free trade for small country World price P w CS: a+b+d; PS:c (c) Gain from trade: CS _____________ PS _____________ Net effect on home welfare _____________ Figure 8.2
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3 3. Home Demand Curve Figure 8.3 (a) Domestic market equilibrium:A; import M1=D1-S1 (b)Import demand curve M 8.3 Import Tariffs for a small country Small country: its demand in the world market does not influence price 1. Effect of the Tariff Impose an import tariff-duty Figure 8.4
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4 Figure 8.5 Effect of the tariffs on CS _____________ Effect of the tariffs on PS
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This note was uploaded on 04/18/2011 for the course ECON 4633 taught by Professor Jingpinggu during the Spring '11 term at Arkansas.

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ch8_stu - Chapter 8 Import Tariffs and Quotas under Perfect...

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