International Econ 3

International Econ 3 - -equivalence of tariffs...

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Chapter 7: Nontariff Barriers Quota: a direct restriction on the quantity of a good imported/exported -simplest and most direct form of NTB Quota rents: revenue generated by the quota -QUOTA ARE MORE DAMAGING THAN TARIFFS
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Unformatted text preview: -equivalence of tariffs & quotas-given any tariff, its possible to impose a quota w/ the same effects on prices, production, consumption, and trade-vice versa w/ quotas-as market conditions change, tariffs & quotas cease to have identical effects...
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