Why could countries design their tariff structures, International Economics

Assignment Help:

Q. The effective rate of protection is a weighted average of nominal tariffs and tariffs on imported inputs. It has been noted that in most industrialized countries, the nominal tariffs on raw materials or products or intermediate components are lower than on final-stage products meant for final markets. Why could countries design their tariff structures in this manner? Who leads to be helped, and who is harmed by this cascading tariff structure?

Answer: The cascading tariff structure is almost certainly the result of systematic lobbying on the part of manufacturing interests and lobbies to lower costs of production in terms of imported inputs. The end result is actually to create effective rates of protection for downstream or final manufacturing processes that are habitually much higher than nominal tariffs on these products. An important group which is harm by this are exporters of raw materials and components in developing countries.


Related Discussions:- Why could countries design their tariff structures

Extensions and tests of the classical model of trsde, #question.suppose tha...

#question.suppose that France has a trade surplus with the United Kingdom. What would you expect to happen to price, wages, and commodity price in France? why? What would happen to

U.s. government offers subsidy, Q. Suppose the U.S. government (but not Eu...

Q. Suppose the U.S. government (but not Europe) offers a $10 million subsidy? Answer: In this case Airbus would make a decision not to enter the market since it knows Boeing

Effects of an increase in the money supply, Q. What will be the effects of ...

Q. What will be the effects of an increase in the money supply on the interest rate? Answer: An enhance in the money supply will origins the interest rate to decrease. This m

Explain how the aa schedule is derived, Q. Explain how the AA schedule is d...

Q. Explain how the AA schedule is derived. Answer: For a fixed real money supply an enhancement in output leads to an increase in the domestic interest rate. In the foreign e

International Trade, alternative explanations to the theory of internationa...

alternative explanations to the theory of international trade.

International trade, the difference between offer curve analysis ,absolute ...

the difference between offer curve analysis ,absolute and comparative advantage model

Open door economic policy, Open Cities & Open Coastal Areas: like the Sezs...

Open Cities & Open Coastal Areas: like the Sezs, aimed at attracting foreign investments and technology. They are : Dalian (Liaoning province); Qinhuangdao (Hebei), Tianjin, Yant

Why governments sometimes chose to devalue their currencies, Q. What are th...

Q. What are the three main reasons why governments sometimes chose to devalue their currencies? Answer: 1. Permit the government to fight domestic unemployment despite the

Who is liable for discrimination?, een subject to a discrimination complain...

een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd