q-1 - L ectu re 2 I. Opening notes a. A country as a whole...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 2 I. Opening notes a. A country as a whole benefits from trade, not necessarily every individual b. Barriers to trade i. Some are economic some are cultural ii. Ex: tariffs, quotas, voluntary II. What is a tariff a. A tax levied upon a commodity when it crosses national boundaries i. Most common is an import duty 1. Some countries also employ export taxes b. A source of revenue for the government, but more recently they are being used for the protection of domestic industries c. One characteristic of emerging economies is they have been reducing their tariffs (and other barriers to trade) III. Different types of tariffs a. Ad valorem duty i. Fixed percentage of the value 1. FOB (free on board) 2. CIF (cost, insurance, freight) b. Specific duty i. Fixed sum of money per unit of commodity ii. Usually used for standardized (homogenous) products c. Compound duty i. Combination of a specific duty and ad valorem duty IV.Who pays the tariff
Background image of page 1

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

View Full DocumentRight Arrow Icon
a. In small countries i. Always the consumer
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

q-1 - L ectu re 2 I. Opening notes a. A country as a whole...

This preview shows document pages 1 - 3. Sign up to view the full document.

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