ch06ontariff Trade Barriers(国际经济学-浙江林学院,岑丽娟).pptVIP

Carbaugh, Chap. 6 International EconomicsBy Robert J. Carbaugh8th Edition Chapter 6: Nontariff Trade Barriers Import quotas Quotas are a restriction on the quantity of a good that may be imported in any one period (usually below free-trade levels) Global quotas restrict the total quantity of an import, regardless of origin Selective quotas restrict the quantity of a good coming from a particular country Import quota: trade welfare effects Effects of a quota on sugar imports Comparing tariffs and quotas Tariff-rate quota The tariff-rate quota is a two-tiered tariff A specified number of goods (up to the quota limit) may be imported at one (lower) tariff rate, while imports in excess of the quota face a higher tariff rate Tariff-rate quota: trade welfare effects Orderly marketing agreements Market sharing pact signed by trading partners Intended to protect less efficient domestic producers Usually involve voluntary export restraints, or export quotas Effects of a voluntary export quota Domestic content requirements Rules that require a certain percentage of a product’s total value to be produced domestically Often has the effect of forcing lower-priced imports to include higher-cost domestic components or be assembled in a higher-cost domestic market Domestic content: trade welfare effects Subsidies Domestic subsidy Payments made to import-competing producers to raise the price they receive above the market price Export subsidy Payments and incentives offered to export producers intended to raise the volume of exports Subsidies: trade welfare effects Subsidies: trade welfare effects Dumping The practice of selling a product at a lower price in export markets than at home (or exporting at prices below production cost) Sporadic dumping - to clear unwanted inventories or cope with excess capacity Predatory dumping - to undermine foreign competitors Persistent dumping - reaping greater profits by engaging in price discrimination Other NTBs Government procurement p