国际贸易学Chap0043211-课件4

1、4Tariffs4IntroductionFree-trade policies meet major resistance despite benefitsBarriers to free tradeTariffsIntroductionFree-trade policieThe Tariff ConceptTariff: A tax (duty) levied on a product when it crosses national boundariesImport tariffExport tariffTariffs may be imposed for protection or r

2、evenue Protective tariffRevenue tariffDecreasing tariff revenue trend for industrial nations Percentage of government revenue derived from tariffs (Table 4.1)The Tariff ConceptTariff: A taBackBackTypes of TariffsSpecific tariffFixed amount of money per physical unit of the imported productEasy to ap

3、ply and administerProtection to domestic producers during recessionDegree of protection it affords domestic producers varies inversely with changes in import pricesSelected U.S. Tariffs (Table 4.2)Types of TariffsSpecific tarifTypes of TariffsAd valorem (of value) tariffFixed percentage of the value

4、 of the imported productManufactured goods - Wide range of grade variationsConstant degree of protection during periods of changing pricesAdministrative complexities: Customs valuationDetermining the value of an importVariations in the methods used to determine valuesExample: Differences in the use

5、of free-on-board (FOB) in the U.S., and cost-insurance-freight (CIF) in European countriesContinuedTypes of TariffsAd valorem (ofTypes of TariffsCompound tariffCombination of specific and ad valorem tariffsOften applied to manufactured products embodying raw materials subject to tariffsSpecific port

6、ion neutralizes the cost disadvantage resulting from tariff protection granted to domestic suppliers of raw materialsAd valorem portion of the duty grants protection to the finished-goods industryTariffs for selected countries (Table 4.3)ContinuedTypes of TariffsCompound tarifBackBackBackBackSmuggle

7、d Steel Evades U.S. TariffsConcerns the government and the steel industryLoss of tariff revenueProducts made cheaper by tariff evasionMethods used to evade tariffs:False reclassifications to reflect duty-free productsDetach markings: Changing the country of originAltering chemical compositions of pr

8、oducts Smuggled Steel Evades U.S. TarEffective Rate of ProtectionNominal tariff rateGives a general idea of the level of protectionApplies only to the total value of the final import productEffective tariff rateIndicator of actual level of protection that a nominal tariff rate providesTotal increase

9、 in domestic productive activities in comparison with the occurrence under free-trade conditionsEffective Rate of ProtectionNoEffective Rate of ProtectionEffective tariff ratee: effective rate of protectionn: nominal tariff rate on the final producta: ratio of the value of the imported input to the

10、value of the final productb: nominal tariff rate on the imported inputEffective Rate of Protection (Table 4.4)ContinuedEffective Rate of ProtectionEfBackBackEffective Rate of ProtectionConsequences of effective-rate calculation: Degree of effective protection increases as the value added by domestic

11、 producers declines A tariff on imports used in production process reduces the level of effective protectionContinuedEffective Rate of ProtectionCoTariff EscalationOffers greater protection to intermediate and finished products than to primary commodities For the U.S., effective rate of protection t

12、ends to be higher than the nominal rate (Table 4.5)Tariffs rise significantly with the level of processing in many industrial countries (Figure 4.1)May discourage the growth of processingHampers diversification into higher value-added exports for the less-developed nationsTariff EscalationOffers gre

13、ateBackBackBackBackOutsourcing and Offshore-Assembly Provision (OAP)Foreign assembly type of outsourcingRetain higher production and employment levels in the U.S. than may be otherwise possibleOAPFavorable treatment to products assembled abroad from U.S.-manufactured componentsPertains to foreign co

14、mpanies as wellUse of U.S. components and materials in foreign assembly operations (Table 4.6)Outsourcing and Offshore-AsseBackBackPostponing Import DutiesBonded warehouseImported goods temporarily left duty-freeDuties paid when withdrawn for consumptionNo duty required if withdrawn for export Forei

15、gn trade zone (FTZ); free zone or free portEnlarges benefits of a bonded warehouse by: Eliminating restrictive aspects of customs surveillanceOffering suitable manufacturing facilitiesNot considered within U.S. Customs territoryManufacturers seek FTZ status to obtain relief from inverted tariff sche

16、dulesPostponing Import DutiesBondedTariff Welfare Effects: Consumer and Producer SurplusConsumer surplusDifference between the amount buyers would be willing and able to pay for a good, and the actual amount they payInversely proportionate to market priceProducer surplusRevenue received over and abo

17、ve the minimum amount required to induce producers to supply goodsDirectly proportionate to market priceConsumer surplus and producer surplus (Figure 4.2)Tariff Welfare Effects: ConsuBackBackTariff Welfare Effects: Small Nation ModelPrice taker nationFaces a constant world price level for its import

18、 commodityIntroduction of import tariff:Lowers national welfare (Figure 4.3)Revenue effectRedistributive effectProtective effectConsumption effectDeadweight lossTariff Welfare Effects: SmallBackBackTariff Welfare Effects:Large-Nation Model Changes in quantity of its imports, using tariff policy, inf

19、luences the world price of the productTerms of trade can improve for nation imposing the tariffEffects of increases in U.S. tariffs on the world price of imported goods (Table 4.7)Tariff Welfare Effects:Large-BackBackTariff Welfare Effects:Large-Nation Model Economic effects of an import tariff for

20、a large nation (Figure 4.4)Components of revenue effect Domestic revenue effectTerms-of-trade effectContinuedTariff Welfare Effects:Large-BackBackTariff Welfare Effects:Large-Nation Model A tariff causes: Gain due to improved terms of tradeLoss due to reduced import volumeOptimum tariff rateTariff r

21、ate at which positive difference between the gain and loss is maximizedOnly beneficial to the importing nationA beggar-thy-neighbor policy; could invite retaliationContinuedTariff Welfare Effects:Large-How a Tariff Burdens ExportersHigher prices of imports due to tariffs injure domestic exportersInc

22、reases input costs, leads to higher prices and reduced overseas salesExample: Caterpillar Inc. (Figure 4.5)Raises the cost of living by increasing the price of importsInternational repercussions lead to reductions in domestic exportsHow a Tariff Burdens ExportersBackBackHow a Tariff Burdens Exporter

23、sDomestic exporters do not protest policies on tariff-induced cost increases because:Increases are subtle and invisibleMagnitude of increases render companies incapable of developingNo tangible basis for political resistanceContinuedHow a Tariff Burdens ExportersTariff Burdens ExportersConsequences

24、for U.S. manufacturers paying more for steel inputs than foreign competitors: Increase in raw material costsThreat to accessing steel products not manufactured in the U.S.Increased foreign competition for the products they makeTariff Burdens ExportersConseqBushs Steel Tariffs Buy Time for Troubled I

25、ndustryTariffs on imported steel products: 2002 (Table 4.8)Critics Big integrated companies: Lack of competitivenessBurden on steel-using industriesCost of saving jobsPositivesRelief from importsCost cutting; mergers; renegotiation of labor contracts Removal of tariffs (December 2003)Primarily in re

26、sponse to W.T.O rulingBushs Steel Tariffs Buy Time BackBackTariffs and the PoorEmpirical studies often maintain that:Welfare costs of tariffs can be highTariffs cause inequitable income-distribution U.S. tariffs highest on goods important to the poor (Table 4.9)Most U.S. trade partners operate simil

27、arlyEffects of U.S. tariff policy on other countries:Burdens countries that specialize in the cheapest goodsTariffs and the PoorEmpirical BackBackArguments for Trade RestrictionsFree-trade argument states:Long run benefits can include lower prices, higher output, income, and consumptionTrade barrier

28、s prevent the economy from undergoing adjustment, resulting in economic stagnationProtectionists view:Free trade is theoretical, not applicable in real world Noneconomic benefits such as national security more than offset economic lossesArguments for Trade RestrictioJob ProtectionDominant factor inf

29、luencing the call for trade restrictions This view fails to acknowledge the dual nature of international tradeStudies: Trade restrictions have little or no positive effect on the level of employment in the long runCost of preserving jobsJob ProtectionDominant factor Protection Against Cheap Foreign

30、LaborUsing tariffs to defend domestic jobs against cheap foreign labor (Table 4.10)Tariffs on imported goods equal to wage differentialLimitations of cheap-foreign-labor argument:Low wages by themselves do not guarantee low production costs (Table 4.11) Productive superiority of domestic laborLow-wa

31、ge nations tend to have a competitive advantage where labor requirement is higher than other factor inputsProtection Against Cheap ForeiBackBackBackBackFairness in Trade: A Level Playing FieldAlleged advantages for foreign firms Weak pollution control regulations; worker safetyLow corporate taxes an

32、d compliance with other employment regulationsHigh trade barriers; subsidies Arguments against levying restrictionsDomestic economy benefits from trade even if foreign nations impose trade restrictionsArgument does not recognize potential impact on global tradeFairness in Trade: A Level PlMaintenanc

33、e of the Domestic Standard of LivingAdvocates of trade barriersTariffs help maintain high income levels and employment Tariffs encourage home spending, which stimulates domestic economic activityConsiderations in this argument:All nations cannot levy tariffs to bolster domestic living standardsPossi

34、bility of retaliatory tariffsMaintenance of the Domestic StProduction Costs EqualizationScientific tariff Eliminate unfair competition from abroadImposition of tariffs equivalent to the cost differentialProblems associated with scientific tariff Cost comparison not achievable due to differences in c

35、osts from business to businessApproximates prohibitive tariffContradicts the notion of comparative advantage Production Costs EqualizationSInfant-Industry ArgumentTemporarily shield newly developing industries from foreign competitionDoes not deny the validity of the case for free tradeArgument must

36、 be qualified in several respects:Elimination challenges for the protective tariff imposedDifficulty in determining the comparative advantage capability of industriesArgument is not valid for mature, industrialized nationsOther ways of insulating a developing industryInfant-Industry ArgumentTemporNoneconomic ArgumentsNational security argument Heavy dependence on foreign suppliersCultural and sociological considerationsThese arguments constitute legitimate reasonsMost arguments justifyi