(贸易政策工具)The Instruments of Trade Policy培训教材.pptVIP

XS PT MD D* S* D S PW 2 QT 1 QW Figure 8-4: Effects of a Tariff P*T 3 t Price, P Quantity, Q Price, P Quantity, Q Price, P Quantity, Q Home market World market Foreign market Home market World market Foreign market In the absence of tariff, the world price of wheat (Pw) would be equalized in both countries, the wheat would be moved from Foreign to Home. Introducing a tariff, then, drives a wedge between the prices in the two markets. Because the shippers are not willing to move wheat from Foreign to Home, so the price of wheat rises to PT at Home and falls to P*T (= PT – t) at Foreign until the price difference is $t. The other outcomes: The volume of wheat traded declines due to the imposition of the tariff. In Home: producers supply more and consumers demand less due to the higher price, so that fewer imports are demanded. In Foreign: producers supply less and consumers demand more due to the lower price, so that fewer exports are supplied. The increase in the domestic Home price is less than the tariff, because part of the tariff is reflected in a decline in Foreign’s export price. If Home is a small country and imposes a tariff, the foreign export prices are unaffected and the domestic price at Home rises by the full amount of the tariff showed by Figure 8-5. Production of the imported good rises from S1 to S2 , while consumption of the good falls from D1 to D2 . Figure 8-5: A Tariff in a Small Country S Price, P Quantity, Q D PW + t PW Imports after tariff S1 D1 Imports before tariff D2 S2 四、Measuring the Amount of Protection (保护程度的衡量) The significance of the tariff The higher price raised by tariff is the tariff’s principal objective to protect domestic producers from the low prices of import competition. So it is important to ask how much protection a tariff or other trade policy actually provides. One can express the amount of protection as a percentage of the price that would prevail under free trade.