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

Heckscher-ohlin theory, Q. Countries do not in fact export the goods the H...

Q. Countries do not in fact export the goods the H.O. theory predicts. Discuss. Answer: This statement isn't true that though one may find several cases where it seems to be

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

Social Networking Sites, What is the learning of International Economics to...

What is the learning of International Economics to the social networking sites

International monetary system influence macroeconomic policy, Q. How did th...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the interwar period (1918 - 1939)? Answer: Governments efficiently sus

Explain how a rise in real income affects aggregate demand, Q. Expl...

Q. Explain how a rise in real income affects aggregate demand. Answer: An increase in domestic real income Y leads to a rise in disposable income Yd. This increases

Effects of increase in european money supply on dollar, Analyze the effects...

Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate. Answer:  The major points are: A raise in the European money supply will reduc

Explain why under the gold standard a perpetual surplus, Q. Explain why und...

Q. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Answer: Since specie inflows drive up domestic prices and restore symmetry in

reciprocal demand and offer curve, what do you understand by (reciprocal d...

what do you understand by (reciprocal demand)offer curve

Dont put all your eggs in one basket, Q. Explain Tobin's idea of "D...

Q. Explain Tobin's idea of "Don't put all your eggs in one basket." Answer: The idea of diversification advanced with Tobin in his Attitude Towards Risk as well as Por

Important benefits enjoyes by companies through TRIPs, Describe the importa...

Describe the important benefits enjoyed by indian companies through TRIPs. Elaborate the main objective of WTO in global ecomommy

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