Imagine that the production of $2 million worth of autos in Japan requires $150,000 worth of steel. Japan’s nominal tariff rates for importing these goods are 25% for autos and 15% percent for steel. Calculate the effective rate of protection for Japan’s auto industry and round your answer to two decimal places

Q: For large countries an import tariff will deteriorate the terms of trade with other countries.…

A: A tariff refers to a tax that one nation levies on products and services imported from…

Q: A tariff on imported widgets would __________ domestic widget consumers, __________ domestic widget…

A: A tariff is a tax imposed on the imported products to generate revenue. Due to tariffs the price of…

Q: Why would an importing country use a tariff rather than a quota?

A: Tariff is a tax that is imposed on the goods that are produced outside the country and sold…

Q: Explain why high tariffs have a negative impact on a country's economy.

A: The objective of this question is to understand the negative impacts of high tariffs on a country's…

Q: Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for…

A: Consumer surplus- It is the difference between willingness to pay and actually paid by consumers .…

Q: Explain why costs to consumers of a tariff or quota are greater than the net welfare costs to…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: You have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing…

A: The infant industry argument states that the industries that are newly established (infant…

Q: Explain how the cost of a country’s tariffs is calculated as a percentage of gross domestic product…

A: Tariff refers to the tax that is imposed by the government of a nation on the imported goods and…

Q: T F Quotas may be set on worldwide imports or onimports from a specific country

A: Quotas on import are limits implemented by the government of a country inorder to manage the…

Q: Discuss with relevant examples 2 reasons of how tariffs protect domesticsm producers.

A: In an open economy, tariffs refer to the taxes imposed on imported goods by the government to…

Q: With the help of a graph, explain how imposition of an import tariff affects the tariff-levying…

A: Tariff: Tariff is a non-quantity barrier. It is a tax which is imposed on the import as well as on…

Q: Explain how the cost of a country’s tariffs is calculated as a percentage of gross domestic product…

A: GDP refers to the final value of goods and services that produced in a certain period of time in an…

Q: Do you think China was right to place its own tariff on its exports of textiles from China? Why?…

A: Because U.S first applied heavy tariffs,therefore China had to reply.

Q: Explain the effects of tariff on the current account of an importing country

A: As economies and societies developed, the study of economics got more complicated. Hence, as a…

Q: What would be the effective rate of protection on bicycles in China if China places a 45 percent…

A: The world price of bicycle = $210.The world price of bike components = $110.The tariff on bicycles…

Q: What is the effect of placing tariffs on products imported into the U.S. from other countries? Are…

A: Import Tariffs: It refers to the tariffs that are imposed on the imported goods. They increase the…

Q: Refer to the accompanying diagram, which shows the domestic demand and supply curves for cotton…

A: Producer revenue will be the total receipts from selling the goods.  Producer revenue = Price *…

Q: Can a country ever gain from an import tariff, theoretically and/or in practice?

A: A tariff is a tax levied on goods imported, and a quota is a quantitative limitation on goods…

Q: Suppose Mexico wants to protect its domestic automobile industry from U.S. and Japanese…

A: The tariff and quota are tools of government to restrict the imports or imported quantity. It…

Q: Why do low income countries have higher tariffs than high income countries?

A: Tariff is a tax imposed on imported goods and services. It is used to restrict trade. Trade taxes or…

Q: For a blue cheese to be called "Roquefort cheese," it must be aged in the natural Combalou caves of…

A: The objective of the question is to identify the type of non-tariff barrier to trade that Australia…

Q: untry (that can affect the world price) than a small country. Show your work graphically and expl

A: A tariff is a tax being imposed by a government of a country upon the imports or the exports of…

Q: What are the benefits and costs of import tariffs?

A: Benefits of import tariffs :  It is one of the best source of government revenue.  Tariffs are a…

Q: The cost of producing cars in Canada is $30,000, while the cost of producing cars in Mexico is…

A: Trade creation entails new trade that would not exist without the FTA and is always advantageous for…

Q: Identify the various types of tariffs and their purpose

A: A tariff is a charge or tax that a nation's government imposes on a traded good as it enters its…

Q: b. Analyze the impact of tariffs on domestic industries and consumer welfare, considering both…

A: A tariff is the name of the tax or duties which are imposed on goods which will be exported or…

Protective Tariffs

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges which a country charged on imported goods to protect its domestic market. It also protects countries Industrialists in their Production. So, that their markets remain intact and do not get dumped by outside supply.