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1、International EconomicsBy Robert J. Carbaugh8th EditionChapter 6:Nontariff Trade BarriersImport quotasQuotas are a restriction on the quantity of a good that may be imported in any one period (usually below free-trade levels)Global quotas restrict the total quantity of an import, regardless of origi
2、nSelective quotas restrict the quantity of a good coming from a particular countryTypes of non-tariff barriers2Import quota: trade & welfare effectsTypes of non-tariff barriers3Effects of a quota on sugar importsTypes of non-tariff barriers4Comparing tariffs and quotasTypes of non-tariff barriers5Ta
3、riff-rate quotaThe tariff-rate quota is a two-tiered tariffA specified number of goods (up to the quota limit) may be imported at one (lower) tariff rate, while imports in excess of the quota face a higher tariff rateTypes of non-tariff barriers6Tariff-rate quota: trade & welfare effectsTypes of non
4、-tariff barriers7Orderly marketing agreementsMarket sharing pact signed by trading partnersIntended to protect less efficient domestic producersUsually involve voluntary export restraints, or export quotasTypes of non-tariff barriers8Effects of a voluntary export quotaTypes of non-tariff barriers9Do
5、mestic content requirementsRules that require a certain percentage of a products total value to be produced domesticallyOften has the effect of forcing lower-priced imports to include higher-cost domestic components or be assembled in a higher-cost domestic marketTypes of non-tariff barriers10Domest
6、ic content: trade & welfare effectsTypes of non-tariff barriers11SubsidiesDomestic subsidyPayments made to import-competing producers to raise the price they receive above the market priceExport subsidyPayments and incentives offered to export producers intended to raise the volume of exportsTypes o
7、f non-tariff barriers12Subsidies: trade & welfare effectsTypes of non-tariff barriers13Subsidies: trade & welfare effectsTypes of non-tariff barriers14DumpingThe practice of selling a product at a lower price in export markets than at home (or exporting at prices below production cost)Sporadic dumping - to clear unwanted inventories or cope with excess capacityPredatory dumping - to undermine foreign competitorsPersistent dumping - reaping greater profits by engaging in price discriminationTypes of non-tariff barriers15Other NTBsGovernment procurement policiesSocial regulations (health
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