国际经济学 英文版 第六章.pptVIP

Chapter 6 Tariffs FIGURE 6.1 The Gains from Free Trade FIGURE 6.2 Consumer Surplus FIGURE 6.2 Consumer Surplus FIGURE 6.4 The Gains from Free Trade (Imports Side) FIGURE 6.5 The Gains from Free Trade (Exports Side) FIGURE 6.6 The Effect of an Import Tariff By a Small Country TABLE 6.4 Welfare Cost of a Tariff Imposed by a Small Country FIGURE 6.7 Two Deadweight Cost of the Tariff * * Free Trade with a Large Country Assume country A is a large country (with market power) importing from country B Equilibrium world price—the price at which the quantity that consumers in A want to import is equal to the quantity producers in B want to export. Refer to Figure 6.9 International Free Trade Equilibrium (next slide) FIGURE 6.9 International Free-Trade Equilibrium Effects of a Tariff Imposed by a Large Country Refer to Figure 6.10 Tariff for Large Country Price effect Consumption effect Production (or protective) effect Imports effect Government revenue effect Consumer surplus effect Producer surplus effect FIGURE 6.10 Illustration of a Tariff for a Large Country Welfare Effects of a Tariff on a Large Country Because of its market power, the large country is able to shift part of the burden of the tariff onto the exporting country. The greater the tariff burden or revenue paid by foreign exporters compared to the large country’s deadweight costs, the greater the welfare increase in the large country (Refer to Table 6.6) TABLE 6.6 Welfare Cost of a Tariff Imposed by a Large Country Optimal Tariff The size of a tariff that raises the welfare of a tariff-imposing country by the greatest amount relative to free-trade welfare levels. Trade (or Tariff) War A general reduction in world trade brought about by retaliation and increases in trade barriers around the world Effects of the Smoot-Hawley Tariff Act of 1930 Refer to Global Insights 6.3 The Tariff Act resulted in average tariff levels rising to almost 60% and covered more than 12,000 products. Other countries reta