国际经济学第九版英文课后答案 第8单元

*CHAPTER 8 (Core Chapter)

TRADE RESTRICTIONS: TARIFFS

OUTLINE

8.1 Introduction

8.2 Partial Equilibrium Analysis of a Tariff

Case Study 8-1: Average Tariff on Non-Agricultural Products in Major Developed Countries

Case Study 8-2: Average Tariff on Non-Agricultural Products in Some Major

Developing Countries

8.2a Partial Equilibrium Effects of a Tariff

8.2b Effects of a Tariff on Producer and Consumer Surplus

8.2c Costs and Benefits of a Tariff

Case Study 8-3: The Welfare Effects of Liberalizing Trade in Some U.S. Products Case Study 8-4: The Welfare Effects of Liberalizing Trade in Some EU Products 8.3 The Theory of Tariff Structure

8.3a The Rate of Effective Protection

8.3b Generalization and Evaluation of the Theory of Effective Protection

Case Study 8-5: Rising Tariff Rates with Degree of Domestic Processing

Case Study 8-6: Structure of Tariffs on Industrial Products in U.S., EU, Japan, and Canada

8.4 General Equilibrium Analysis of a Tariff in a Small Country

8.4a General Equilibrium Effects of a Tariff in a Small Country

8.4b Illustration of the Effects of a Tariff in a Small Country

8.4c The Stolper-Samuelson Theorem

8.5 General Equilibrium Analysis of a Tariff in a Large Country

8.5a General Equilibrium Effects of a Tariff in a Large Country

8.5b Illustration of the Effects of a Tariff in a Large Country

8.6 The Optimum Tariff

8.6a The Meaning of the Concept and Retaliation

8.6b Illustration of the Optimum Tariff and Retaliation

Appendix: A8.1 Partial Equilibrium Effects of a Tariff in a Large Nation

A8.2 Derivation of the Formula for the Rate of Effective Protection

A8.3 The Stolper-Samuelson Theorem Graphically

A8.4 Exception to the Stolper-Samuelson Theorem - The Metzler

Paradox

A8.5 Short-run Effect of a Tariff on Factors' Income

A8.6 Measurement of the Optimum Tariff

Key Terms

Trade or commercial policies Consumer surplus

Import tariff Rent or producer surplus

Export tariff Protection cost or deadweight loss of a tariff Ad valorem tariff Nominal tariff

Specific tariff Rate of effective protection

Compound tariff Domestic value added

Consumption effect of a tariff Prohibitive tariff

Production effect of a tariff Stolper-Samuelson theorem

Trade effect of a tariff Metzler paradox

Revenue effect of a tariff Optimum tariff

Lecture Guide

1.I would cover sections 1 and 2 and assign problems 1-2 in the first lecture. The

most difficult part of section 2 is the meaning and measurement of consumer and producer surplus. Since a clear understanding of the meaning and measurement

of consumer and producer surplus is crucial in evaluating the effect of tariffs, I

would explain t hese concepts very carefully.

2.I would then cover section 3 and assign problems 3-6 in the second lecture. The

theory of tariff structure is also very difficult and important, and so I would also

explain this concept very carefully. I found that the best way to explain it is by

using the simple example used in the text of the suit with and without imported

inputs.

3.The rest of the chapter can be skipped without loss of continuity by those

Instructors who do not wish to cover the general equilibrium effects of tariffs. 4.For those Instructors who wish to cover the rest of the chapter, I would take up

another two lectures to do so. I would also assign and grade problems 8-14 to

make sure that students understand the material.

5.In covering section 8.4, I would pay special attention to the explanation of Figure

8-5 and to the Stolper-Samuelson theorem.

6.In covering Section 8.6, please note that the optimum tariff can only be discussed

intuitively without trade indifference curves (examined in Appendix A8.6). Answer to Problems

1.a) Consumption is 70Y, production is 10Y and imports are 60Y (see Figure 1 on

the next page).

b) Consumption is 60Y, production is 20Y and imports are 40Y (see Figure 1).

c) The consumption effect is -10Y, the production effect is +10Y, the trade effect

is -20Y and the revenue effect is $40 (see Figure 1).

2. a) The consumer surplus is $245 without and $l80 with the tariff (see Figure 1).

b)Of the increase in the revenue of producers with the tariff (as compared with

their revenues under free trade), $l5 represents the increase in production costs

and another $15 represents the increase in rent or producer surplus (see Figure

1).

c) The dollar value or the protection cost of the tariff is $l0 (see Figure 1).

3. This will increase the rate of effective protection in the nation.

4. a) g = 0.4 - (0.5)(0.4) = 0.4 - 0.2 = 0.2 = 40%

1.0 - 0.5 0.5 0.5

5. a) g=60%

b) g=80%

c) g=0

d) g=20%

6. a) g=70%

b) See the first paragraph of section 8.3b.

7. See Figure 2.

8.When Nation 1 (assumed to be a small nation) imposes an import tariff on

commodity Y, the real income of labor falls and that of capital rises.

9.Py/Px rises for domestic producers and consumers. As production of Y (the K-

intensive commodity) rises and that of X falls, the demand and income of K rises and that of L falls. Therefore, r rises and w falls.

10.If Nation 1 were instead a large nation, then Nation 1's terms of trade rise and the

real income of L may also rise.

India is more likely to restrict imports of K-intensive commodities in which India has a comparative disadvantage and this is likely to increase the return to capital

and reduce the return to labor according to the Stolper-Samuelson theorem.

12. See Figure 3 on the previous page.

13. See Figure 4.

14. a) The volume of trade may shrink to zero (the origin of offer curves).

App. 1. The more elastic S H and S F are, the lower is the free trade price

of the commodity and the lower is the increase in the domestic

price of the commodity as a result of the tariff.

App. 2a. The supply curve of the nation for the commodity shifts up

and to the left (as with the imposition of any tax); this does not affect

the consumption of the commodity with free trade, but it reduces

domestic production and increases imports of the commodity; it

also increases the revenue effect and reduces producers' surplus.

b)The imposition of a tariff on imported inputs going into the domestic production

of the commodity will have no effect on the size of the protection cost or

deadweight loss.

App. 3. See Figure 5 (on the next page).

App. 4. See Figure 6.

App. 5. Real w will fall in terms of Y and rise in terms of X. On the

other hand, r eal r will rise in terms of Y and fall in terms of X. This

can be seen by drawing a figure similar to Figure 8-10, but with the

VMPLy curve shifting upward.

App. 6a. See Figure 7.

c) After Nation 1 has imposed an optimum tariff and Nation 2 has retaliated

with an optimum tariff of its own, the approximate terms of trade for Nation

1 is 0.8, while the approximate terms of trade of Nation

2 is 1.25.

d) Nation 1's welfare declines from the reduction in the volume and in the terms

of trade. Although nation 2's terms of trade are higher than under free trade,

the volume of trade has shrunk so much that nation 2's welfare is also likely

to be lower than under free trade.

Multiple-choice Questions

1. Which of the following statements is incorrect?

a. An ad valorem tariff is expressed as a percentage of the value of the traded commodity

b. a specific tariff is expressed as a fixed sum of the value of the traded commodity.

c. export tariffs are prohibited by the U.S. Constitution

*d. The U.S. uses exclusively the specific tariff

2. A small nation is one:

a. which does not affect world price by its trading

b. which faces an infinitely elastic world supply curve for its import commodity

c. whose consumers will pay a price that exceeds the world price by the amount of the tariff

*d. all of the above

3. If a small nation increases the tariff on its import commodity, its:

a. consumption of the commodity increases

b. production of the commodity decreases

c. imports of the commodity increase

*d. none of the above

4.The increase in producer surplus when a small nation imposes a tariff is measured by

the area:

*a. to the left of the supply curve between the commodity price with and without the tariff

b. under the supply curve between the quantity produced with and without the tariff

c. under the demand curve between the commodity price with and without the tariff

d. none of the abov

e.

5. If a small nation increases the tariff on its import commodity:

*a. the rent of domestic producers of the commodity increases

b. the protection cost of the tariff decreases

c. the deadweight loss decreases

d. all of the above

6.Which of the following statements is incorrect with respect to the rate of effective

protection?

a. for given values of ai and ti, g is larger the greater is t

b. for a given value of t and ti, g is larger the greater is a i

c. g exceeds, is equal to or is smaller than t, as t i is smaller than, is equal to or is larger than t

*d. when a i t i exceeds t, the rate of effective protection is positive

7. With a i=50%, t i=0, and t=20%, g is:

*a. 40%

b. 20%

c. 80%

d. 0

8. The imposition of an import tariff by a small nation:

*a. increases the relative price of the import commodity for domestic producers and consumers

b. reduces the relative price of the import commodity for domestic producers and consumers

c. increases the relative price of the import commodity for the nation as a whole

d. any of the above is possible

9. The imposition of an import tariff by a small nation:

a. increases the nation's welfare

*b. reduces the nation's welfare

c. leaves the nation's welfare unchanged

d. any of the above is possible

10. According to the Stolper-Samuelson theorem, the imposition of a tariff by a nation:

a. increases the real return of the nation's abundant factor

*b. increases the real return of the nation's scarce factor

c. reduces the real return of the nation's scarce factor

d. any of the above is possible

11. The imposition of an import tariff by a nation results in:

a. an increase in relative price of the nation's import commodity

b. an increase in the nation's production of its importable commodity

c. reduces the real return of the nation's abundant factor

*d. all of the above

12. The imposition of an import tariff by a nation can be represented by a rotation of the: *a. nation's offer curve away from the axis measuring the commodity of its comparative advantage

b. the nation's offer curve toward the axis measuring the commodity of its comparative advantage

c. the other nation's offer curve toward the axis measuring the commodity of its comparative advantage

d. the other nation's offer curve away from the axis measuring the commodity of its comparative advantage

13. The imposition of an import tariff by a large nation:

a. increases the nation's terms of trade

b. reduces the volume of trade

c. may increase or reduce the nation's welfare

*d. all of the above

14. The imposition of an optimum tariff by a large nation:

a. improves its terms of trade

b. reduces the volume of trade

c. increases the nation's welfare

*d. all of the above

15. The optimum tariff for a small nation is:

a. 100%

b. 50%

*c. 0

d. depends on elasticities