Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the...
-
Upload
brody-glascock -
Category
Documents
-
view
225 -
download
1
Transcript of Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the...
![Page 1: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/1.jpg)
Chapter 8 Analysis of a Tariff
![Page 2: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/2.jpg)
Chapter Objective
To understand the effects of import tariffs on the imposing country and the world.
8.1 Introduction
![Page 3: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/3.jpg)
Contents
Purposes for imposing a tariff
Types of Tariffs
Ways to measure tariff levels
Effects of a tariff on a small country
Effects of a tariff on a large country
![Page 4: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/4.jpg)
8.2 The Evolvement of Tariffs
What is a tariff ?
The origin of tariffs: Tarifs
The Evolvement of Tariffs
![Page 5: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/5.jpg)
8.3 Why would a Country Impose a Tariff?
Discourage consumption
Generate revenue
Reduce deficit in the balance of payment
Protect domestic industries
![Page 6: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/6.jpg)
8.4 Types of Tariffs
Specific Tariffs 从量税 Ad Valorem Tariffs 从价税
![Page 7: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/7.jpg)
Import Tariffs MFN rates Ordinary rates
Export Tariffs Transit Duties 过境税
![Page 8: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/8.jpg)
Import Surtaxes
General Import Surtaxes Specific Import Surtaxes
Anti-dumping Duties 反倾销税 Countervailing Duties 反补贴税
![Page 9: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/9.jpg)
Variable Levy 差价税
Common Agricultural Policy
共同农业政策
Target Price Threshold Price
Variable Levy = Threshold Price - CIF Price
![Page 10: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/10.jpg)
Preferential duties
Lomé Convention 1975 洛美协定
ASEAN东盟
![Page 11: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/11.jpg)
Generalized System of Preferences 普遍优惠制
History UNCTAD 联合国贸发会议
1964 Geneva 1968 New Delhi The Group of 77
![Page 12: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/12.jpg)
Preferences and Coverage
Recipient Countries Products Covered Magnitude of Preference
![Page 13: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/13.jpg)
GSP and China
![Page 14: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/14.jpg)
8.5 Customs Tariff and Commodity Classification
Customs Tariff
海关税则 Tariff No. Description of Goods Rate of Duty
![Page 15: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/15.jpg)
Commodity Classification
Customs Cooperation Council Nomenclature
( CCCN ) 海关合作理事会税则商品目录 Standard International Trade Classification
国际贸易标准分类 ( SITIC ) Harmonized Commodity Description and Coding
System ( HS ) 商品列名与编码协调制度
![Page 16: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/16.jpg)
第 76 章 铝及其制品
7601 未锻轧铝7601.1000 非合金铝7601.2000 铝合金7602 废铝碎料7602.0000 废铝碎料7603 铝粉及片状粉末7603.1000 非片状粉末7603.2000 片状粉末
![Page 17: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/17.jpg)
8.6 Ways to Measure Tariff Level
simple average 简单平均 weighted average 加权平均
![Page 18: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/18.jpg)
8.7 What Happens When a Small Country Imposes an Import Tariff?
![Page 19: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/19.jpg)
Consumer Surplus 消费者剩余
O Y0 Y
PY
D
P0 Expenditure
Consumer Surplus
![Page 20: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/20.jpg)
Producer Surplus 生产者剩余
O Y0 Y
PY
S
P0 Costs
Producer Surplus
![Page 21: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/21.jpg)
O Y2 Y4 Y0 Y3 Y1 Y
PY
P1
P0
P1+t
H
Z F
E
V G SW+t
SWa b c d
Dd
Sd
![Page 22: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/22.jpg)
Loss in Consumer Surplus: a + b + c + d
a : Redistribution Effect
c : Revenue Effect
b : Production Effect A deadweight loss from inefficient domestic production
d : Consumption Effect A deadweight loss from higher price and lower consumption volume
b+d : Total deadweight losses
![Page 23: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/23.jpg)
8.8 What Happens When a Large Country Imposes an Import Tariff?
![Page 24: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/24.jpg)
O Y1 Y3 Y2 Y0 Y
PY
P2P0
P1
Sd+W+t
a
b
cd
Dd
Sd
Sd+W
e
t
![Page 25: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/25.jpg)
a , b, c, d The same as in the small country case.
e : terms-of-trade effect Tariff revenue from the exporting country
![Page 26: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/26.jpg)
Net Welfare effect
If e>b+d, domestic welfare
If e<b+d, domestic welfare
In any case, world welfare
![Page 27: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/27.jpg)
Nationally Optimal Tariff
Nationally Optimal Tariff
t*=1/Sm
Sm: Price elasticity of foreign
export supply curve
![Page 28: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/28.jpg)
Nationally Optimal Tariff
Beggar-thy-neighbor policy
Tariff war
![Page 29: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/29.jpg)
8.9 The Effective Rate of Protection
Under free trade
Domestic Value-added (V)
V0 = Pf – Pi
f : imported finished product
i : imported inputs
![Page 30: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/30.jpg)
Under tariff protection
V1 = Pf (1+tf) – Pi (1+ti)
If V1 > V0 , Protection is effective.
ERP = --------- = ------------
a= Pi / Pf
V0 = Pf – Pi
V1 - V0
V0
tf – ati
1- a
![Page 31: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/31.jpg)
ERP and Tariff Structure
Suppose Country A imports X,Pf =20, Pi =15, a=3/4,.
If tf=10% ,ti=0%; ERP=40%.
If tf=10% ,ti=10%; ERP=10%.
If tf=10% ,ti=20%; ERP=-20%.
![Page 32: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/32.jpg)
ERP and Tariff Structure
If tf > ti , ERP> tf .
If tf = ti , ERP= tf = ti .
If tf < ti , ERP< tf .
![Page 33: Chapter 8 Analysis of a Tariff. Chapter Objective To understand the effects of import tariffs on the imposing country and the world. 8.1 Introduction.](https://reader036.fdocuments.in/reader036/viewer/2022081507/5518c742550346991f8b5866/html5/thumbnails/33.jpg)
Summary
Effects of import tariffs
Small country
Large country
Effective rate of protection