Exam 13: The Instruments of Trade Policy

Suppose that the free-trade offer curve of country I is drawn with country I's exports of good A on the horizontal axis and country I's imports of good B on the vertical axis. If country I now places an import quota of 100 units of good B, country I's offer curve

Suppose that the offshore assembly provisions (OAP) of a country A are extended to a final good X that is imported as well as produced domestically. This action will most likely

Although a given set of tariff rates exists for a given country, not all of its trading partners necessarily face the same tariff rate structure. Discuss several reasons why this is the case.

How would you go about calculating an "implicit" or "equivalent" nominal tariff rate on an imported good that faces a nontariff barrier such as an import quota? What difficulties would you encounter?

Suppose that the nominal tariff rate on final good X is 8 percent and that the weighted average of the nominal tariff rates on the inputs used in producing good X is 12 percent. In this situation, the effective rate of protection (ERP) for final good industry X

There is often heated debate over what qualifies as a nontariff barrier to trade and how large any trade-distorting effects of NTBs are. Why might this be so? Why do you suppose such debate is less common for tariffs?

The situation in the United States (and other developed countries) whereby an import Good faces a lower tariff if the good comes from a developing country than if the good Comes from a developed country is known as __________.