international economics

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тема 1 * «international economics» lecture 4. tariffs by professor, doctor of economic sciences (des), extraordinary and plenipotentiary ambassador (epa) islamov bakhtiyor anvarovich * * 4. tariffs. 4.1. the concept and types of tariffs specific tariff ad valorem tariff compound tariff 4.2. effective rate of protection and tariff escalation 4.3. production sharing and offshore-assembly provision 4.4. postponing import duties bonded warehouse foreign- trade zone 4.5. tariff welfare effects: consumer surplus and producer surplus tariff welfare effects: small-nation model tariff welfare effects: large-nation model * 4. tariffs. 4.6. how a tariff burdens exporters and tariff examples harley-davidson revs up sales with tariffs tariffs and the poor 4.7. arguments for and against trade restrictions job protection protection against cheap foreign labor fairness in trade: a level playing field maintenance of the domestic standard of living equalization of production costs infant-industry argument noneconomic arguments 4.8. the political economy of protectionism a supply and …

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ing the country, it does place foreign producers at a competitive disadvantage when selling in the domestic market. a revenue tariff is imposed for the purpose of generating tax revenues and may be placed on either exports or imports. in the united states. 1900, tariff revenues constituted more than 41 percent of u.s. government receipts; in 2001-1%. many developing nations currently still rely on tariffs as a major source of government revenue (almost 75% in ghana due to export of coffee). 4.1. the concept and types of tariffs * 4.1. the concept and types of tariffs types of tariffs: specific, ad valorem, or compound. a specific tariff is expressed in terms of a fixed amount of money per physical unit of the imported product. for example, a uzb. importer of 1 t of grain may be required to pay a duty to the uzb. government of $100 per each ton, …

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cif) valuation. * a compound tariff is a combination of specific and ad valorem tariffs. for example, a us importer of a television might be required to pay a duty of $20 plus 5 percent of the value of the television. compound duties are often applied to manufactured products embodying raw materials that are subject to tariffs. in this case, the specific portion of the duty neutralizes the cost disadvantage of domestic manufactures that results from tariff protection granted to domestic suppliers of raw materials, and the ad valorem portion of the duty grants protection to the finished-goods industry. in the united states, for example, there is a compound duty on woven fabrics (48.5 cents per kilogram plus 38 percent). the specific portion of the duty (48.5 cents) compensates u.s. fabric manufacturers for tariff protection granted to u.s. cotton producers, while the ad valorem portion of the duty (38 percent) …

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tariff rate will differ from the nominal tariff rate. the effective tariff rate is an indicator of the actual level of protection that a nominal tariff rate provides the domestic import-competing producers. it signifies the total increase in domestic productive activities (value added) that an existing tariff structure makes possible, compared with what would occur under free-trade conditions. the effective rate tells us how much more expensive domestic production can be relative to foreign production and still compete in the market. * 4.2. the effective rate of protection and tariff escalation. foreign tv set import domestic competing tv set component parts $800 $ 800 assembly activity (value added) $ 200 $ 300 nominal tariff $ 100 import price $1100 domestic price $1100 the result is that domestic assembly costs could rise to a level of 50% : ($300 - $200):$200x100% = 50%. in general, the effective tariff rate is given …

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state its protective effect. this is in case if the home government desired to protect suppliers of raw materials more than domestic manufacturers. * 4.2. the effective rate of protection and tariff escalation in many industrialized nations the effective rate of protection is at least more than twice the nominal rate. in addition, the tariff structures of industrialized nations have generally been characterized by rising rates that give greater protection to intermediate and finished products than to primary commodities. this is commonly referred to as tariff escalation. this encourages the developing nations to expand operations in raw material sectors, while the high protective rates levied on manufactured goods pose a significant entry barrier for any developing nation wishing to compete in this area. from the point of view of the less-developed nations, it may be in their best interest to discourage disproportionate tariff reductions on raw materials. the effect of …

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тема 1 * «international economics» lecture 4. tariffs by professor, doctor of economic sciences (des), extraordinary and plenipotentiary ambassador (epa) islamov bakhtiyor anvarovich * * 4. tariffs. 4.1. the concept and types of tariffs specific tariff ad valorem tariff compound tariff 4.2. effective rate of protection and tariff escalation 4.3. production sharing and offshore-assembly provision 4.4. postponing import duties bonded warehouse foreign- trade zone 4.5. tariff welfare effects: consumer surplus and producer surplus tariff welfare effects: small-nation model tariff welfare effects: large-nation model * 4. tariffs. 4.6. how a tariff burdens exporters and tariff examples harley-davidson revs up sales with tariffs tariffs and the poor 4.7. arguments for and against trade restrictio...

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