复旦国际贸易英文课件08.pptVIP

U.S. Tariffs on Steel Using these definitions, the deadweight loss relative to the value of imports can be rewritten as: The most commonly used products had a tariff of 30%, so the percentage increase in the price is t/PW = 0.3. %ΔM = 0.3. U.S. Tariffs on Steel This leads to a DWL of The value of steel imports affected by the tariff was about $4.7 billion prior to March 2002 and $3.5 billion after March 2002. Average imports over the two years were $4.1 billion. The dollar magnitude of deadweight loss is equal to $185 million. Import Tariffs for a Large Country Under the small country assumption that we have used so far, the importing country is always harmed due to the tariff. The small country is a world price taker. If we consider a large enough importing country or a large country, however, then we might expect that its tariff will change the world price. Its imports are large enough that it can affect world price with a change in its imports. Import Tariffs for a Large Country Foreign Export Supply If the Home country is large, then the Foreign export supply curve X* is no longer horizontal at the world price PW. We construct the Foreign export supply curve in a fashion similar to the import demand curve. In panel (a) of figure 8.6, we show the Foreign demand curve D* and supply curve S*, giving price of PA* at A*. At this point, Foreign exports are zero. Suppose the world price is PW above PA*. At the higher price, there is a Foreign excess supply of X1* = S1* - D1*, which will be exported at the price of PW at point B*. Import Tariffs for a Large Country Price Price Quantity Exports D* S* Home import demand, M D1* S1* A* A* PA* PW B* X1* Foreign exports, X1* Foreign export supply, X* World price increases to PW, increasing exports to X1* Figure 8.6 This gives us our Foreign export supply curve for the large country At the world price, PA*, exports are zero at A*’ (a) Foreign Mkt (b) World Mkt Import Tariffs for a Large Country Effect of the Tariff