Homework 5

Homework 5 - average tariff rate? (3 points) 5. If the...

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ECON 460, Spring 2011 Homework 5 Due in class on March 2, 2011 Please read Chapter 13 to answer questions 2 to 10 1. If Austria is a rich country, Brazil is a middle income country, while Chad is a poor country with the following goods in the consumption basket of consumers. Austria: Austria: Peas, Suits, Tonic, Wine, Wool Brazil: Nylon, Onions, Peas, Suits, Tonic Chad: Wheat, Bicycle, Nylon, Onions, Peas What will each pair of countries trade with each other? (6 points) 2. Define (3 points * 6 = 18 points) (i) Specific Tariff: (ii) Ad Valorem Tariff: (iii) Import Subsidy: (iv) Preferential Duty: (v) MFN (NTR) status: (vi) Offshore Assembly Provision: 3. What are the U.S. tariff rates for the MFN nations and the Non-MFN nations for the following goods ? (3*6=16 points) Live goats Dog leashes Spinach Chewing Gum T-shirts Telephone Answering Machines 4. If the tariff rates for TVs, Shirts and Airplanes are 20%, 10% and 200% respectively, what is the
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Unformatted text preview: average tariff rate? (3 points) 5. If the volume of imports of TV, Shirts and PCs are $10 million, $5 million and $0 million respectively, what is the weighted tariff rate? (5 points) 6. What is a prohibitive tariff? (3 points) 7. The international price of camcorders is $500 and the US tariff is 10% on a camcorder. Calculate the effective rate of protection for camcorder if the parts for a camcorder cost $300 and the tariff rates are as below: a. 5% (4 points) b. 10% (4 points) c. 15% (4 points) d. 20% (4 points) 8. What are Export Subsidies and when do countries use this? (4 points) 9. What is a non-tariff barrier? (5 points) 10. Define : 3*8 =24 points (i) Import Quotas. (ii) Voluntary Export Restraints. (iii) Government Procurement Provisions. (iv) Domestic Content Provisions (v) European Border Taxes (vi) Administrative Classification (vii) Restrictions on Trade in Services (viii) TRIMs...
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