ch08 The Instruments of Trade Policy 克鲁格曼国际经济学第六版英文演示教学.pptVIP

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ch08 The Instruments of Trade Policy 克鲁格曼国际经济学第六版英文演示教学.ppt

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ch08 The Instruments of Trade Policy 克鲁格曼国际经济学第六版英文演示教学.ppt

Chapter 8 The Instruments of Trade Policy;Introduction Basic Tariff Analysis Costs and Benefits of a Tariff Other Instruments of Trade Policy The Effects of Trade Policy: A Summary Summary Appendix I: Tariff Analysis in General Equilibrium Appendix II: Tariffs and Import Quotas in the Presence of Monopoly ;Introduction;Classification of Commercial Policy Instruments ;Basic Tariff Analysis;To determine the world price (Pw) and the quantity trade (Qw), two curves are defined: Home import demand curve Shows the maximum quantity of imports the Home country would like to consume at each price of the imported good. That is, the excess of what Home consumers demand over what Home producers supply: MD = D(P) – S(P) Foreign export supply curve Shows the maximum quantity of exports Foreign would like to provide the rest of the world at each price. That is, the excess of what Foreign producers supply over what foreign consumers demand: XS = S*(P*) – D*(P*);Quantity, Q;Properties of the import demand curve: It intersects the vertical axis at the closed economy price of the importing country. It is downward sloping. It is flatter than the domestic demand curve in the importing country. ;P2;Properties of the export supply curve: It intersects the vertical axis at the closed economy price of the exporting country. It is upward sloping. It is flatter that the domestic supply curve in the exporting country. ;Figure 8-3: World Equilibrium;Useful definitions: The terms of trade is the relative price of the exportable good expressed in units of the importable good. A small country is a country that cannot affect its terms of trade no matter how much it trades with the rest of the world. The analytical framework will be based on either of the following: Two large countries trading with each other A small country trading with the rest of the world ;Effects of a Tariff Assume that two large countries trade with each other. Suppose Home imposes a tax of $2 on every bushel of wheat importe