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

TRIPs, Describe the important benefits enjoyed by Indian companies through ...

Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy.

Low-inflation reputation, Q. Explain how the German Bundesbank gain...

Q. Explain how the German Bundesbank gained its low-inflation reputation. Answer: Essentially Germany's experience with hyperinflation in the 1920s and yet again aft

What do you think about dollarization, Q. What do you think about dol...

Q. What do you think about dollarization? Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage a

Adam Smith theory of absolute advantage.., Critically evaluate the theory a...

Critically evaluate the theory and outline the necessary assumptions for the theory to hold in it''s purest form

What is financial analysis, Financial analysis : To deeply understand the L...

Financial analysis : To deeply understand the Lenovo's performance for recent years, we get more details on its financial figures (1) compare with the industry averages (2). The fo

Explain the purpose of the given figure, Q. Explain the purpose of the give...

Q. Explain the purpose of the given figure? Answer: To demonstrate that spot and forward exchange rates are in general close to each other.

Substantial current account deficit, Q. What are the reasons for the world ...

Q. What are the reasons for the world as a whole running a substantial current account deficit? Answer: This deficit improved sharply in the early 1980s and has remained high.

Coordination of monetary policies and greater exchange rate, Q. What prompt...

Q. What prompted the EU countries to seek closer coordination of monetary policies and greater exchange rate stability in the late 1960s? Answer: 1. To improve Europe's role

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