1. P Q A Tariff raises the price in Home,while lowering the price in Foreign; Volume of trade declines. Trade Policy Home WorldForeign S D P Q Q MD XS t Tariff

2. Welfare Losses from a Tariff ac b d Welfare Losses e Consumer Loss=a+b+c+d Producer Gain=a Government Revenue=c+e Net loss=b+d-e e=0, for a small country P Q P Q

3. Symmetries S D D-Q I.Perfect Competition Import Quota = Import Tariff

4. Export Subsidy: Gains Losses S a b c d e f g P Q S D Producer gain=a+b+c Consumer loss=a+b Cost of government subsidy=b+c+d+e+f+g Total gain=-(b+d+e+f+g)

5. Tariff & Quota in the Presence of Monopoly MR D MC Q P

6. A Monopolist Protected by a Tariff MC D Q MR

7. A Monopolist Protected by a Quota MC D 1 2 2 1 Rent

8. Comparing a Tariff and a Quota with Same Imports MC D

9. Export Tax and Import Tariff Export TaxImport Tariff S D D S X M X=Export Good Y=Import Good

10. Migration Wage in Country D Wage in Country S AB