international economics

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тема 1 * «international economics» lecture 5. nontariff trade barriers by professor, doctor of economic sciences (des), extraordinary and plenipotentiary ambassador (epa) islamov bakhtiyor anvarovich * * 5. nontariff trade barriers 5.1. import quota trade and welfare effects allocating quota licenses quotas versus tariffs tariff-rate quota: a two-tier tariff 5.2. orderly marketing agreements export quota effects domestic content requirements subsidies domestic subsidy export subsidy 5.3. dumping forms of dumping international price discrimination * 5. nontariff trade barriers. 5.4. antidumping regulations is the antidumping law unfair? should average variable cost be the yardstick for defining dumping? should the antidumping law reflect currency fluctuations? 5.5. other nontariff trade barriers government procurement policies social regulations sea transport and freight restrictions key concepts and terms study questions exploring further 5.1: tariff-rate quota welfare effects * 5. nontariff trade barriers this lecture considers policies other than tariffs that restrict trade. referred to as nontariff trade …

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s to a level below that which would occur under free-trade conditions. for example, a quota - no more than 1 mln. kg of cheese or 20 mln kg of wheat can be imported within specific time period. a common practice to administer an import quota is for the government to require an import license. each license specifies the volume of imports allowed, and the total volume allowed should not exceed the quota. these licenses require the importer to spend time filling out forms and waiting for official permission. licenses can be sold to importing companies at a competitive price, or simply a fee or to preferred importers. however, this allocation method provides incentives for political lobbying and bribery. import quotas on manufactured goods have been outlawed by the wto. where import quotas have been used by advanced countries such as japan and the us is to protect agricultural producers. …

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selective quota. for example, a country might impose a global quota of 30 million apples per year, of which 14 million must come from the united states, 10 million from mexico, and 6 million from canada. customs officials in the importing nation monitor the quantity of a particular good that enters the country from each source; once the quota for that source has been filled, no more goods are permitted to be imported. selective quotas suffer from many of the same problems as global quotas. consider the case of kmart, which ordered more than a million dollars‘ worth of wool sweaters from china in the 1980s. another feature of quotas is that their use may lead to domestic monopoly of production and higher prices. because a domestic firm realizes that foreign producers cannot surpass their quotas, it may raise its prices. tariffs do not necessarily lead to monopoly power, because …

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ed by u.s. firms from 1 pound to 3 pounds and a decrease in u.s. quantity demanded from 8 pounds to 6 pounds. * 5.1. import quota. because the quota in our example results in a price increase to $5 per pound, u.s. consumer surplus falls by an amount equal to area a + b + c + d ($17.50). area a ($5) represents the redistributive effect, area b ($2.50) represents the protective effect, and area d ($2.50) represents the consumption effect. the deadweight loss of welfare to the economy resulting from the quota is depicted by the protective effect plus the consumption effect. but what about the quota's revenue effect, denoted by area c ($7.50)? this amount arises from the fact that u.s. consumers must pay an additional $2.50 for each of the 3 pounds of cheese imported under the quota, as a result of the quota induced scarcity …

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under quotas. * 5.1. import quota. quotas versus tariffs previous analysis suggests that the revenue effect of import quotas differs from that of import tariffs. these two commercial policies can also differ in the impact they have on the volume of trade. the following example illustrates how, during periods of growing demand, an import quota restricts the volume of imports by a greater amount than does an equivalent import tariff. figure 5.3 represents a hypothetical trade situation of the united states in autos. the u.s. supply and demand schedules for autos are given by 5u s.o and du.s. , and 5jo represents the japanese auto supply schedule. suppose the u.s. government has the option of levying a tariff or a quota on auto imports to protect u.s. companies from foreign competition. * 5.1. import quota. in figure 5.3(a), a tariff of $1,000 would raise the price of japanese autos from …

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О "international economics"

тема 1 * «international economics» lecture 5. nontariff trade barriers by professor, doctor of economic sciences (des), extraordinary and plenipotentiary ambassador (epa) islamov bakhtiyor anvarovich * * 5. nontariff trade barriers 5.1. import quota trade and welfare effects allocating quota licenses quotas versus tariffs tariff-rate quota: a two-tier tariff 5.2. orderly marketing agreements export quota effects domestic content requirements subsidies domestic subsidy export subsidy 5.3. dumping forms of dumping international price discrimination * 5. nontariff trade barriers. 5.4. antidumping regulations is the antidumping law unfair? should average variable cost be the yardstick for defining dumping? should the antidumping law reflect currency fluctuations? 5.5. other nontariff trade bar...

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