Chapter 8 The Instruments of Trade policy
Chapter 8 The Instruments of Trade Policy
Chapter Organization Introduction Basic Tariff analysis Costs and benefits of a tariff Other Instruments of Trade policy The Effects of Trade Policy: A Summary Summary Copyright C 2003 Pearson Education, Inc Slide 8-2
Copyright © 2003 Pearson Education, Inc. Slide 8-2 ▪ Introduction ▪ Basic Tariff Analysis ▪ Costs and Benefits of a Tariff ▪ Other Instruments of Trade Policy ▪ The Effects of Trade Policy: A Summary ▪ Summary Chapter Organization
Appendix l: Tariff Analysis in General Equilibrium Appendix l: Tariffs and Import Quotas in the Presence of monopoly Copyright C 2003 Pearson Education, Inc Slide 8-3
Copyright © 2003 Pearson Education, Inc. Slide 8-3 ▪ Appendix I: Tariff Analysis in General Equilibrium ▪ Appendix II: Tariffs and Import Quotas in the Presence of Monopoly
Introduction This chapter is focused on the following questions: What are the effects of various trade policy instruments? Who will benefit. and who will lose What are the costs and benefits of protection? Will the benefits outweigh the costs What should a nation's trade policy be? Copyright C 2003 Pearson Education, Inc Slide 8-4
Copyright © 2003 Pearson Education, Inc. Slide 8-4 Introduction ▪ This chapter is focused on the following questions: • What are the effects of various trade policy instruments? – Who will benefit , and who will lose ? • What are the costs and benefits of protection? – Will the benefits outweigh the costs? • What should a nation’s trade policy be?
Classification of Commercial Policy Instruments Commercial Policy Instruments Trade Contraction Trade Expansion Price Quantity Price Quantity Tariff Import quota Import subsidy Voluntary Export tax Voluntary Export subsidy Im port Export Expansion Restraint (VE) (VER) Copyright C 2003 Pearson Education, Inc Slide 8-5
Copyright © 2003 Pearson Education, Inc. Slide 8-5 Classification of Commercial Policy Instruments Commercial Policy Instruments Trade Contraction Trade Expansion Tariff Export tax Import quota Voluntary Export Restraint (VER) Import subsidy Export subsidy Voluntary Import Expansion (VIE) Price Quantity Price Quantity