ch06Nontariff Trade Barrier(国际经济学-(By Robert J. Carbaugh)s

International EconomicsBy Robert J. Carbaugh 9th Edition

Chapter 6: Nontariff Trade Barriers

Copyright ©2004, South-Western College Publishing

Types of non-tariff barriers

Import quotas Quotas are a restriction on the quantity of a good that may be imported in any one period (usually below free-trade levels) Global quotas restrict the total quantity of an import, regardless of origin Selective quotas restrict the quantity of a good coming from a particular country

Carbaugh, Chap. 6

Types of non-tariff barriers

Import quota: trade & welfare effects

Carbaugh, Chap. 6

Types of non-tariff barriers

Effects of a quota on sugar imports

Carbaugh, Chap. 6

Types of non-tariff barriers

Comparing tariffs and quotas

Carbaugh, Chap. 6

Types of non-tariff barriers

Tariff-rate quota The tariff-rate quota is a two-tiered tariff A specified number of goods (up to the quota limit) may be imported at one (lower) tariff rate, while imports in excess of the quota face a higher tariff rate

Carbaugh, Chap. 6

Types of non-tariff barriers

Tariff-rate quota: trade & welfare effects

Carbaugh, Chap. 6

Types of non-tariff barriers

Orderly marketing agreements Market sharing pact signed by trading partners Intended to protect less efficient domestic producers Usually involve voluntary export restraints, or export quotas Recent trade negotiations have restricted the use of these agreementsCarbaugh, Chap. 68

Types of non-tariff barriers

Effects of a voluntary export quota

Carbaugh, Chap. 6

Types of non-tariff barriers

Domestic content requirements Rules that require a certain percentage of a product’s total value to be produced domestically Often has the effect of forcing lower-priced imports to include higher-cost domestic components or be assembled in a highercost domestic market

Carbaugh, Chap. 6

Types of non-tariff barriers

Domestic content: trade & welfare effects

Carbaugh, Chap. 6

Types of non-tariff barriers

Subsidies Domestic subsidy Payments made to import-competing producers to raise the price they receive above the market price

Export subsidy Payments and incentives offered to export producers intended to raise the volume of exports

Carbaugh, Chap. 6

Types of non-tariff barriers

Subsidies: trade & welfare effects

Carbaugh, Chap. 6

Types of non-tariff barriers

Subsidies: trade & welfare effects

Carbaugh, Chap. 6

Types of non-tariff barriers

Dumping The practice of selling a product at a lower price in export markets than at home (or exporting at prices below production cost) Sporadic dumping - to clear unwanted inventories or cope with excess capacity Predatory dumping - to undermine foreign competitors Persistent dumping - reaping greater profits by engaging in price discriminationCarbaugh, Chap. 615

Types of non-tariff barriers

Other NTBs Government procurement policies Social

regulations (health, environmental and safety rules can also restrict trade) Sea transport and freight restrictions

Carbaugh, Chap. 6

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