Econ 4321 chapter 4 : tariffs study play tariff a tax on a good when it crosses a boundary compound tariffs in detail differences in cost of production are the whole basis for comparative advantage if a scientific tariff is imposed to equalize costs, the nation will not see the gains from using its resources efficiently. Advantages: tarrifs reduce international competition against small firms,businesses and workers in the country where tariffs are placed onimports, so those small firms ca n stay and provide jobs and incomesfor the country's citizens balance of trade deficit is made less prominent.
Import and export tariffs, which can be either ad valorem or non-ad valorem, are some of the ways that governments alter international trade to their advantage and regulate their economies ad valorem tariffs, which impose a customs duty on the value of a product or commodity, are the most common. A compound tariff is an import duty that combines features of a specific tariff and that of an ad valorem tariff.
Compound tariff - combination of specific and ad valorem advantage - easy to administer disadvantage - protection varies inversely with import price advantage - applied on wide range of product variations constant degree of protection disadvantage - hard to administer. The advantage of compound tariff is you are able to collect on the perks of both types of tariff the disadvantage is incorrect estimates of the monetary value of the imports and the higher tariff may discourage imports or certain products. Mixed tariffs are expressed as either a specific or an ad valorem rate, depending on which generates the most (or sometimes least) revenue for example, indian duties on certain rayon fabrics are either 15 percent ad valorem or rs 87 per square meter, whichever is higher compound tariffs include both ad valorem and a specific component for example, pakistan charges rs 088 per liter of some petroleum products plus 25 percent ad valorem.
Revenue tariff :- a revenue tariff is a way that the government will try to increase their funds a tariff on coffee imports imposed by countries where coffee cannot be grown, for example, raises a steady flow of revenue. Advantages and disadvantages of specific ad valorem and compound tariff essays and research papers advantages and disadvantages of specific ad valorem and compound tariff overall applicability of the factor-endowment model. Many countries' tariff schedules also include a variety of non ad valorem tariffs specific tariffs are computed on the physical quantity of the good being imported, eg, australia's 2005 schedule includes a tariff of $122/kg on certain types of cheeses and the united states charges $068 per live goat the physical quantity may be expressed in ways that are difficult to determine without laboratory equipment. Question: describe a specific tariff, an ad valorem tariff, and a compound tariff what are the advantages what are the advantages describe a specific tariff, an ad valorem tariff, and a compound tariff.
International economics ch4 study play describe a specific tariff, an ad valorem tariff, and a compound tariff what are the advantages and disadvantages of each specific tariff - fixed amount of money per unit produced easy to apply and administer ad valorem - fixed percentage of the value of the imported product compound tariff - a. Compound tariff advantage overall applicability of the factor-endowment model according to staffan linder, there are two explanations of international trade patterns—one for manufacturers and another for primary (agricultural) goods.
1 the advantages and disadvantages of a tariff 2 how a tariff lowers the welfare of the world as a whole 3 ad valorem tariff and specific tariff 4 effective rate of protection 5. Forms of import tariffs compound tariffs include both ad valorem and a specific component for example, pakistan charges rs 088 per liter of some petroleum products plus 25 percent ad valorem tariff rate quotas are made up of a low tariff rate on an initial increment of imports.
Definition of compound tariff: ad valorem tariff plus another specified rate also called mixed tariff dictionary term of the day articles subjects.