ch05-国际经济学课后答案与习题(萨尔瓦多).pdf

CHAPTER 5 Core Chapter TRADE RESTRICTIONS TARIFFS OUTLINE 5 1 Introduction 5 2 Types of Tariffs Case Study 5 1 Average Tariff on Industrial Products in Major Developed Countries Case Study 5 2 Average Tariff on Industrial Products in Some Major Developing Countries 5 3 Effects of a Tariff in a Small Nation 5 4 Effect of a Tariff on Consumer and Producer Surplus 5 5 Costs and Benefits of a Tariff in a Small Nation Case Study 5 3 The Welfare Effects of Liberalizing Trade in Some U S Products Case Study 5 4 The Welfare Effects of Liberalizing Trade in Some EU Products 5 6 Costs and Benefits of a Tariff in a Large Nation 5 7 The Optimum Tariff and Retaliation 5 8 Theory of Tariff Structure Case Study 5 5 Rising Tariff Rates with Degree of Domestic Processing Case Study 5 6 Structure of Tariffs in the United States EU and Canada Appendix Optimum Tariff and Retaliation with Offer Curves Key Terms Trade or commercial policies Revenue effect of a tariff Import tariff Consumer surplus Export tariff Rent or producer surplus Ad valorem tariff Protection cost or deadweight loss of a tariff Specific tariff Terms of trade effect of the tariff Compound tariff Optimum tariff Consumption effect of a tariff Prohibitive tariff Production effect of a tariff Rate of effective protection Trade effect of a tariff 36 Lecture Guide 1 I would cover sections 1 4 in the first lecture The most difficult part is Section 4 on the meaning and measurement of consumer and producer surplus Since a clear understanding of the meaning and measurement of consumer and producer surplus is crucial in measuring the welfare effect of tariffs I would explain these concepts very carefully 2 I would cover sections 5 and 6 in the second lecture These are the most difficult sections in the chapter and also the most important 3 The theory of tariff structure is also difficult and important I found that the best way to explain it is by using the simple example in the text on the suit with and without imported inputs This section is likely to generate a great deal of discussion about the trade relations between developed and developing nations If you do not plan to cover optional Chapter 8 on growth and development you could spend a bit more time on this topic here even though it will come up again in Chapter 6 Answer to Problems 1 a See Figure 1 on the next page b Consumption is 70X production is 50X and imports are 20X c The consumption effect is 30X the production effect is 30X the trade effect is 60X and the revenue effect is 30 see Figure 1 2 a The consumer surplus is 250 without and l22 50 with the tariff see Figure 1 b Of the increase in the revenue of producers with the tariff as compared with their revenues under free trade 22 50 represents the increase in production costs and another 22 50 represents the increase in rent or producer surplus see Figure 1 c The dollar value or the protection cost of the tariff is 45 see Figure 1 3 The dollar value or the protection cost of the tariff is 45 see Figure 2 4 The dollar value or the protection cost of the tariff is 45 see Figure 3 5 The optimum tariff is the tariff that maximizes the net benefit resulting from the improvement in the nation s terms of trade against the negative effect resulting from reduction in the volume of trade 37 AC B GJH E DX SX X 0 1 2 3 2 50 4 5 6 102030405060708090100 P X Fig 5 1 Fig 5 1 Fig 5 2 JH bd AC B E DX X 0 1 0 50 2 3 4 5 6 102030405060708090100 P X Fig 5 2 J N H M JG a bd ABMCN c E DX SX X 0 0 50 1 00 1 50 2 00 3 00 20306090100 P X Fig 5 3 Fig 5 3 38 6 a When a nation imposes an optimum tariff the trade partner s welfare declines because of the lower volume of trade and the deterioration in its terms of trade b The trade partner is likely to retaliate and in the end both nations are likely to lose because of the reduction in the volume of trade 7 Even when the trade partner does not retaliate when one nation imposes the optimum tariff the gains of the tariff imposing nation are less than the losses of the trade partner so that the world as a whole is worse off than under free trade It is in this sense that free trade maximizes world welfare 8 a The nominal tariff is calculated on the market price of the product or service The rate of effective protection on the other hand is calculated on the value added in the nation It is equal to the value of the price of the commodity or service minus the value of the imported inputs used in the production of the commodity or service b The nominal tariff is important to consumers because it determines by how much the price of the imported commodity increases The rate of effective protection is important for domestic producers because it determines the actual rate of protection provided by the tariff to domestic processing 9 a Rates of effective protection in industrial nations are generally much higher than the corresponding nominal rates and increase with the degree of processing b The tariff structure of developed nations is of great concern for developing nations because it discourages manufacturing production in developing nations 10 If a nation reduces the nominal tariff on the importation of the raw materials required to produce a commodity but does not reduce the tariff on the importation of the final commodity produced with the imported raw material then the effective tariff rates will increase relative to the nominal tariff rate on the commodity 39 Multiple choice Questions 1 Which of the following statements is incorrect a an ad valorem tariff is expressed as a percentage of the price of the traded commodity b a specific tariff is expressed as a fixed sum of the value of the traded commodity c export tariffs are prohibited by the U S Constitution d the U S uses exclusively the specific tariff 2 A small nation is one a which does not affect world price by its trading b which faces an infinitely elastic world supply curve for its import commodity c whose consumers will pay a price that exceeds the world price by the amount of the tariff d all of the above 3 If a small nation increases the tariff on its import commodity its a consumption of the commodity increases b production of the commodity decreases c imports of the commodity increase d none of the above 4 The increase in producer surplus when a small nation imposes a tariff is measured by the area a to the left of the supply curve between the commodity price with and without the tariff b under the supply curve between the quantity produced with and without the tariff c under the demand curve between the commodity price with and without the tariff d none of the above 5 If a small nation increases the tariff on its import commodity a the rent of domestic producers of the commodity increases b the protection cost of the tariff decreases c the deadweight loss decreases d all of the above 6 The imposition of an optimum tariff by a small nation a improves its terms of trade b reduces the volume of trade c increases the nation s welfare d non of the above 40 7 The optimum tariff for a small nation is a 100 b 50 c 0 d depends on the elasticity of demand and supply for the import commodity in the nation 8 The imposition of an optimum tariff by a large nation a improves its terms of trade b reduces the volume of trade c increases the nation s welfare d all of the above 9 The imposition of an optimum tariff by a large nation a improves the terms of trade of the trade partner b reduces the volume of trade c increases the trade partner s welfare d all of the above 10 If two large countries impose an optimum tariff a the welfare of the both nations decrease b the welfare of the both nations increase c the welfare of the larger nation will increase and that of the other nation decreases d the welfare of the larger nation will decrease and that of the other nation increases 11 If one nation imposes an optimum tariff and the other nation does not retaliate a the welfare of the first nation increases and that of the welfare of the second nation falls b the welfare of the second nation increases and that of the welfare of the second nation falls c the welfare of both nations fall d the welfare of both nations increase 12 If one nation imposes an optimum tariff and the other nation does not retaliate a the welfare of the first nation increases more than the fall in the welfare of the second nation b the welfare of the first nation increases more than the fall in the welfare of the second n