国际商务教学及参考chap005.pdfVIP

5-2 Case: Agricultural subsidies and development ◼ Rich nations spend more than $300 billion a year to subsidize their farmers ◼ Subsidies create surplus production ◼ Surplus production leads to dum and depressed prices ◼ UN estimates producers in develo nations lose $50 billion export revenue because of depressed prices 5-3 Agricultural subsidies and development ◼ Rich countries of the developed world subsidize farm products ◼ Reasons ◼ To keep commodity prices low ◼ To favor politically active farmers ◼ Consequences ◼ Surplus production ◼ Depressed world prices (a result of surplus) 5-4 Instruments of trade ◼ Tariffs - oldest form of trade ◼ Specific ◼ Ad valorem ◼ Good for ernment ◼ Protects domestic producers ◼ Reduces efficiency ◼ Bad for consumers ◼ reases cost of goods 5-5 Instruments of trade -subsidies ◼ ernment payment to a domestic producer ◼ Cash grants ◼ Low-interest loans ◼ Tax breaks ◼ ernment equity participation in the ◼ Subsidy revenues are generated from taxes ◼ Subsidies encourage over-production, inefficiency and reduced trade 5-6 Instruments of trade - Quota ◼ Import quota ◼ Restriction on the ty of some good imported into a country ◼ Voluntary export restraint (VER) ◼ Quota on trade i