The Effective Rate of Protection The Effective Rate of Protection measures the percentage effect of the entire tariff structure on the value added per.

Slides:

Advertisements

Similar presentations

Antonia Diakantoni Hubert Escaith WTO

Advertisements

Chapter 13 Slide 1 Copyright © 2003 Pearson Education, Inc.

International Trade Policy Trade Restrictions: Tariffs Focuses on barriers to free trade.

International Economics By Robert J. Carbaugh 9th Edition

International Economics Tenth Edition

Trade Restrictions: Tariffs Chapter 8

An Introduction to International Economics

The consequences of trade barriers: The Case of an Import Tariff Chapter 8: Analysis of a Tariff.

Copyright ©2004, South-Western College Publishing International Economics By Robert J. Carbaugh 9th Edition Chapter 4: Tariffs.

Carbaugh, Chap. 5 1 Why restrict trade? Benefits of free trade in final goods are spread widely Tariffs on intermediate inputs tend to be low Costs of.

International Economics Tenth Edition

Chapter 8 Trade Restrictions: Tariff Barriers

Copyright © 2011 Pearson Addison-Wesley. All rights reserved. Chapter 6 The Theory of Tariffs and Quotas.

Chapter 8 Analysis of Tariffs plus Appendixes C & D

TARIFF BARRIERS MADE BY: Saodat Sodikova. TYPES OF TRADE BARRIERS There are two types of trade barriers: – Tariff Barriers – Nontariff Barriers.

Appendix to Chapter 1 Defining Aggregate Output, Income, the Price Level, and the Inflation Rate.

Carbaugh, Chap. 5 1 Why restrict trade?  Benefits of free trade spread widely  Costs of free trade are felt rapidly  Costs usually concentrated in specific.

1 Welcome to Econ 414 International Economics Study Guide Week Seven Chapter 6.

C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to Define GDP and explain why the value of production,

Copyright © 2011 Cengage Learning 9 Application: International Trade.

Chapter 16 Trading with Other Nations. Copyright © 2005 Pearson Addison-Wesley. All rights reserved.16-2 Learning Objectives Make the distinction between.

1 MICROECONOMIC REFORM VCE ECONOMICS. 2 Microeconomic reform refers to government policies which aim to improve the individual sectors of the markets.

 decimals/cc-7th-fracs-to-decimals/v/converting-fractions-to-decimals-example.

ECON International Economics Chapter 5 Protectionism and Free Trade.

Globalisation Today…. Free Trade and Protectionism – Definitions – Videos – Quiz Questions.

Session 8 Analysis of a Tariff. Tariff Tariff is a tax on importing a good or service into a country, usually collected by customs official at a place.

Isolationism and restrictions in trade. 3 main ways nations restrict trade Tariffs—taxes on imports – Revenue tariff is designed to raise money for government.

 Government actions that are designed to protect domestic industries and jobs from foreign competition.  While international trade allows people and.

1 LECTURE 7 International Trade and Development. 2 The Basis for Trade International trade is the exchange of goods and services between countries. International.

Adding SubtractingMultiplyingDividingMiscellaneous.

International Economics Tenth Edition

Civics Core 100, Goal 9 The learner will analyze factors influencing the United States economy.

Chapter 4: International Business What Is International Business? Barriers to International Business The Canadian government uses barriers, often referred.

International Trade. Trade allows nations to specialize in some products and then trade them for goods and services that are more expensive to produce.

7 th Grade Civics Miss Smith *pgs (21.4).

1 An Introduction to International Economics Second Edition Trade Restrictions: Tariffs Dominick Salvatore John Wiley & Sons, Inc. CHAPTER F I V E.

World price Quantities Prices World price plus tariff Domestic demand Tariff Marginal cost ABDC Quantity imported T HE BASIC WELFARE ANALYSIS OF TARIFFS.

1 Introduction to International Trade and Trade Policy.

3 Restrictions on Imports

International Economics International Economics Tenth Edition Trade Restrictions: Tariffs Dominick Salvatore John Wiley & Sons, Inc. Salvatore: International.

Unit 2 Glossary. Macroeconomics The study of issues that effect economies as a whole.

PROTECTION TYPES AND IMPACT TARIFF……….TAX OR CHARGE ON AN IMPORTED PRODUCT….CAN BE SPECIFIC…….MONETARY AMOUNT PER ITEM…..€10 ……….OR AD VALOREM…% OF VALUE.

Final Exam Review Unit 2: International Economics.

Restrictions on free trade

Market-led development – Main claims Minimal government – Provide order, protect property rights, enforce contracts, provide basic infrastructure, provide.

Study Unit 5 Ms. K Amusa.

Restrictions on Free Trade

7.4 World Trade Organisation

International Economics By Robert J. Carbaugh 10th Edition

International Economics By Robert J. Carbaugh 7th Edition

International Economics Tenth Edition

Natural Resources & Trade

Chapter 7: The Basic Analysis of a Tariff

International Economics By Robert J. Carbaugh 9th Edition

Chapter 14: The Political Economy of Trade and Agriculture

Commercial Policy Commercial policy refers to any governmental measure that discriminates against foreign suppliers.

Natural Resources & Trade

Review Concepts Production Possibilities Comparative Advantage

International Economics By Robert J. Carbaugh 9th Edition

The Instruments of Trade Policy

Gross Domestic Product

Copyright eStudy.us 2010 Application: International Trade What determines whether a country imports or exports a good? Who gains.

The Welfare Effects of Import Tariff and Quota: “Small” Country

Adding with 9’s.

Adding with 10’s.

ECONOMICS OF THE GREAT DEPRESSION

Natural Resources & Trade

The Great Depression.

Free Trade vs Protectionism

Objective- To graph a relationship in a table.

Presentation transcript:

The Effective Rate of Protection The Effective Rate of Protection measures the percentage effect of the entire tariff structure on the value added per unit of output in each industry.

The Effective Rate of Protection t Tariff Structure Tariff structure refers to the relationship among tariffs in related industries. t Value Added Value added is the difference between the selling price and the cost of intermediate goods. V = P A - P S a

The Effective Rate of Protection ERP = ( V’- V ) / V t ERP = Effective Rate of Protection t V’ = Value Added with tariff t V = Value added with free trade

The Effective Rate of Protection ERP = (t f – at i ) / (1 – a) Where t f is the nominal tariff on the imported finished good, a is the value of imported inputs as a share of the value of the final good under free trade, and t i is the tariff on imported inputs used by the domestic producers.