tariff(关税)

1、Why does the tariff exist? Although free-trade and specialization enhance world welfare and benefits the participating nation, they often meet resistance among those companies and workers who losses in income and jobs. But WHY?Because there is a serious import competition.Policy discussions generall

2、y consider where along this spectrum a country should locate.Autarky (closed market)E.g. Cuba, North Korea, ancient ChinaFree Trade(opening market)E.g. Singapore, Hong KongprotectionismTrade liberalizationThen comes the tariff.Protective tariff: It is designed to reduce the amount of imports enterin

3、g a country, thus insulating import-competing (mainly are domestic) producers from foreign competition.Revenue tariff: It is imposed for the purpose of generating tax revenues and may be placed on either exports or imports.It is existed for generate revenues.So The reason why a country impose a tari

4、ff is:Discourage consumptionGenerate revenueReduce deficit in the balance of paymentProtect domesticTypes of tariff Specific tariff ad valorem tariff compound tariff9Effective Rate of ProtectionIt is the rate of value added per unit of output in each industry, when both intermediate and final goods

5、are imported. It is used to measure the real amount of protection afforded to a particular industry by tariff. E= The effective rate of protection.N= The nominal tariff rate on the final product.A= The ratio of the value of the imported input to the value of the final products.B= The nominal tariff

6、rate on the imported inpute.g. 1Please turn to page 116.Suppose.E= The effective rate of protection.V= the value added of the domestic final products.V= the value added of final products.Tariff escalationTariff escalation, a common practice in international commodity trade, refers to a situation whe

7、re tariffs are zero or low on primary products and increase, or escalate, as products undergo processing. Reducing tariff escalation by WTOIt is now becoming an important issue in the ongoing World Trade Organization (WTO) negotiations on agriculture. It causes the price of value-added imports relat

8、ive to raw products to increase, decreasing the demand for processed products in the importing country. Through tariff escalation, one country can effectively protect its domestic processing industries while limiting the scope of trade-related industrialization in foreign countries.Dodging Import Ta

9、riffsTariff Avoidance:It is the legal utilization of the tariff system to ones own advantage in order to reduce the amount of tariff that is payable by means that are within the law. Tariff Evasion:It occurs when individuals or firms evade tariffs by illegal means, such as smuggling imported goods i

10、nto a country.Tariff Effects Tariffs are taxes on imports. They make the item more expensive for consumers, thus reducing demand. It may benefit producers of an nations industry.But buyers will have to pay more.Jobs will be lost at retail and shipping companies that import foreign-made goods.Tariff

11、Welfare EffectsConsumer surplusThe difference between the amount that buyers would be willing and able to pay for a good and the actual amount they do really pay.Consumer surplus is the sum of the surplus for each unit.Producer surplusThe revenue producers receive over and above the minimum amount r

12、equired to supply a good.To a certain extension, it also means the net profit.Small-nation ModelIt is used to measure the effects of a tariff on a nations welfare, and to consider the case of a nation whose imports constitute a very small portion of the world market supply.Question & AnswerQ1:De

13、scribe a specific tariff, an ad valorem tariff, and a compound tariff. What are the advantages and disadvantage of each? Question & AnswerQ2:Under what conditions does a nominal tariff applied to an import product overstate or understate the actual, or effective, protection afforded by the nomin

14、al tariff? Question & AnswerQ3: Less-developed nations sometimes argue that the industrialization. Explain. U.S impose extra safeguard duties on imports of Chinese tires “Weve brought trade cases against China at nearly twice the rate as the last administration and its made a difference. Over a thousand Americans are working today because we stopped a surge in Chinese tires.” President Barack Obama, State of the Union Address, Jan. 24, 2012. 200935% 201030% 201125% Three years extra safeguard duties on