3. (15%) Import tariff on a manufactured good in a country X equals 10 % while tariff on raw materials is 2%. In price of the final good, value of imported raw materials makes up 50%. Calculate the effective rate of protection for domestic manufacturing in the country.
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- of The following graph shows the domestic supply of and demand for oranges in Jordan. The world price (Pw) of oranges is $780 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars perton) 1220 1165 1110 1055 1000 045 + 890 835 780 725 670 Domestic Demand 0 30 60 Domestic Supply 8 00 120 150 180 210 QUANTITY (Tons of nrannee) W 240 270 300Quantity of imports 200 Foreign currency price of imports 20 Exchange rate (d/f) 1.50 Future Exchange rate (d/f) 1.20 a) What is the foreign currency value of imports if the elasticity of demand is 0.5? b) What is the domestic currency value of imports if the elasticity of demand is -0.5? c) What is the foreign currency value of imports if the elasticity of demand is 2.5?00 7 F. PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 2. Domestic Demand Domestic Supply 770 740 710 680 650 620 06 P, 530 MacBook Pro Search or type URL 4. 51 9.
- 2 Kwame is the purchasing manager for an electronics firm in North Carolina. He purchases a large quantity of diodes from NXP Semiconductors in the Netherlands, a manufacturer of diodes. What kind of export or import transaction does this represent? a indirect export b direct import c indirect import d direct exportPrice (dollars per ton) 1,000 800 600 400 200 0 1 2 3 4 5 D 6 Steel (millions of tons per year) The figure shows the market for steel in the United States. If the world price for a ton of steel is $200 per ton, how much steel does the United States import? Suppose the United States imposes a tariff of $400 per ton of steel. With this tariff, how much steel does the United States import? If it is possible to calculate the amount of the deadweight loss from the $400 per ton tariff, what is the amount? If it is not possible, explain why it is not possible to calculate it. Next suppose the United States imposes a tariff of only $200 per ton of steel. With this tariff, how much steel does the United States import? How much revenue does the government collect from this tariff? Finally, suppose that instead of a tariff the United States imposes a quota of 2 million tons of steel per year. Illustrate how the market changes with this quota. With the quota, what is the price of steel in the…(Trade Restriction) The below 3 graphs show net losses to the economy of the country that imposed tariffs or quotas on imported sugar. What kinds of gains and losses would occur in the economies of countries that export sugar?
- Questions The import duty is a 5% tariff on imported motorcycles. You are given the information shown in the table. Questions Current situation with 5% Estimated situation tariff without tariff World price $2000per cycle $2050per cycle Tariff at 5% $100per cycle 0 Domestic price $2100per cycle $2050per cycle Number of cycles 100,000 105,000 purchased domestically per year Number of cycles 40,000 35,000 produced domestically per year Number of cycles 60,000 70,000 imported per year Questions Calculate the following: • The consumer gain from removing the duty. The producer loss form removing the duty. • The government tariff revenue loss. The net effect on the country's well-being. Why does the net effect on the country as a whole differ from the result in previous questio4. (20%) Depict on graph and briefly explain economic consequences of export tariff: · for exporters; for domestic consumers; for government budget; for national economic welfare as a whole.Fill in the table
- 37 Domestic Demand PRICE (Dollars per tricycle) 1 200 360 QUANTITY (Tricycles) Domestic Supply World Price 520 Refer to the above figure. With trade, the price of tricycles in this country is $19, with 360 tricycles produced in this country and another 320 tricycles imported. $19, with 200 tricycles produced in this country and another 160 tricycles imported. $11, with 360 tricycles produced in this country and another 160 tricycles imported. $11, with 200 tricycles produced in this country and another 320 tricycles imported.PRICE (Dollars per ton) 865 Domestic Demand 830 795 760 725 690 655 620 585 550 515 7 0 40 80 Domestic Supply PW 120 160 200 240 280 320 360 400 QUANTITY (Tons of oranges) If Honduras is open to international trade in oranges without any restrictions, it will import A tariff set at this level would raise $ Suppose the Honduran government wants to reduce imports to exactly 160 tons of oranges to help domestic producers. A tariff of $ will achieve this. tons of oranges. in revenue for the Honduran government. per ton41) A tariff is a tax imposed by a government on its own exports. T or F