Measures used to restrict international trade, Microeconomics

Measures used to restrict International Trade:

These are taxes imposed on traded commodities as they cross national boarders. These are two main types of tariffs. An import tariff is a duty on an imported commodity.Export tariff is a duty on an exported commodity.

• Tariffs may be specific, ad valorem or compound (a combination of an ad valorem and specific tariff). The effect of a tariff on imports depends on its size and the elasticity of demand for the imported commodity, If demand for imports is elastic, a tariff imposed will reduce imports by switching demand towards the domestically produced substitutes, conversely, if demand for imports is price inelastic, the main effect of the tariff will be on import prices rather than on the quantity of imports.

• Domestic Subsidies:These may be provided in many forms to avoid dumping. They are subsidies provided to certain domestic industries as a means of protecting them from lower priced foreign goods. These subsidies reduce the prices of the domestic products and make them more price- competitive.

• Quotas: They are quantitative restrictions (non tariff restrictions) on the imports and exports. They restrict the amount of commodities allowed to be imported or exported.

Posted Date: 1/3/2013 12:45:54 AM | Location : United States







Related Discussions:- Measures used to restrict international trade, Assignment Help, Ask Question on Measures used to restrict international trade, Get Answer, Expert's Help, Measures used to restrict international trade Discussions

Write discussion on Measures used to restrict international trade
Your posts are moderated
Related Questions
what is rational decision and why it requires one''s choices be consistent with one''s goals?

Question (a) Describe clearly the three concepts of elasticity of demand. Use appropriate examples and diagrams to support your answer. (b) Consider you have been appointed

Q. Explain about Real Wages? Real Wages:Value of wages, adjusted for level of consumer prices. If nominal value of wages is growing faster than consumer prices, then real wages

Taxes: Compulsory government levies collected to pay for public spending. There are numerous types of taxes (corporate, income, wealth, sales, environmentaland payroll taxes); each

what is a sub game perfect Nash equilibrium


Two firms, A and B, are planning to bid for a contract of Motorway extension in Mauritius. Suppose: (1) firm B is a newly established company and has already incurred a st

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What are the basis for International Trade?

Commodities that are viewed as luxuries typically have price elastic demand, and commodities that are requirements have price inelastic demand.  There is easily no substitute for a