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
Consider a hypothetical nation, Solowland, which were in the steady state. We consider a constant return to scale production function based on two production factors, labor and cap

Explain the axioms of completeness, transitivity and non-satiation using appropriate examples.

STATE AND EXPLAIN SLUTSKYS THEORM?

explain the difference between traditional theory and modern theory of cost

Unemployment: Individuals who want to be employed, and are actively seeking work, but can't find a job, are considered ‘officially' unemployed. Individuals who aren't working, but

discuss the methods used by the malaysian government to slow down import growth.


Why firm charges different prices to different consumer?  Every firm needs to maximize its profit. When goods are sold to different customers, each customer negotiate price of

1. Explain what are price ceilings and price floors and how they effect the market for a good or service. Also show through graphs, if they cause any inefficiencies in a perfectly