普格尔《国际贸易（第17版）》 英文手册Pugel_17e_chap008_IM.docxVIP

PAGE PAGE 64 ? 2016 by McGraw-Hill Education. ?This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. ?This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.? Chapter 8 Analysis of a Tariff Overview This chapter starts the analysis of government policies that limit imports, by examining the tariff—a government tax on imports. Early in the chapter, the first in a series of boxes on Global Governance introduces the World Trade Organization (WTO), created in 1995, which subsumed the General Agreement on Tariffs and Trade (GATT), formed in 1947. The major principles of the WTO include trade liberalization, nondiscrimination, and no unfair encouragement of exports. Eight completed rounds of multilateral trade negotiations have been successful in lowering tariffs imposed on most nonagricultural imports into industrialized countries. The box also notes the different path that developing countries have taken to their tariff reductions. In addition to beginning the examination of the role and activities of the WTO, the chapter has two major purposes. First, the analysis shows the effects of a tariff when the importing country is small, so that its import policies have no effect on world prices. Second, the analysis of a large importing country—one whose policies can affect world prices—shows that a large country can use a tariff to lower the price that it pays foreigners for its imports. Furthermore, the box “They Tax Exports, Too” shows that analysis of an export duty parallels that of an import tariff. We begin by examining the effects of an import tariff imposed by a small country (contrasted with free trade), using supply and demand within the importing country. Since foreign exporters do not change the price that they charge for the product, the domestic price of the imported product rises by the amount of the tariff. Domestic produ