TradeLecture19

TradeLecture19 - Chapter 8 The Instruments of Trade Policy...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 h I t t f T d P li The Instruments of Trade Policy Slides based on Krugman and Obstfeld (2003) 6 th ed, and slides prepared for Pearson Education by Iordanis Petsas and li Di l Elias Dinopoulos.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Introduction So far we have looked at motivations for ternational trade (and factor movements) We international trade (and factor movements). We asked “why should nations trade?” Now we change the focus to the question of “how should trade be managed?” In particular: What are the effects of various trade policy instruments? ho will benefit and who will lose from these trade policy • Who will benefit and who will lose from these trade policy instruments? What are the costs and benefits of protection? ill th b fit t i h th t ? • Will the benefits outweigh the costs? What should a nation’s trade policy be? • For example, should the United States use a tariff or an import © Ben Zissimos, Vanderbilt University quota to protect its automobile industry against competition from Japan and South Korea?
Background image of page 2
Introduction Classification of Commercial Policy Instruments Commercial Policy Instruments Trade Contraction Trade Expansion Price Quantity Price Quantity Tariff Export tax Import quota Voluntary Export estraint Import subsidy Export subsidy Voluntary Import Expansion IE) © Ben Zissimos, Vanderbilt University Restraint (VER) (VIE)
Background image of page 3

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

View Full DocumentRight Arrow Icon
Basic Tariff Analysis Tariffs can be classified as: Specific tariffs • Taxes that are levied as a fixed charge for each unit of goods
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/05/2011 for the course CLAS 146 taught by Professor Solomon during the Spring '11 term at Vanderbilt.

Page1 / 13

TradeLecture19 - Chapter 8 The Instruments of Trade Policy...

This preview shows document pages 1 - 5. Sign up to view the full document.

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