DIŞ TİCARET - Deneme Sınavı - 12

Thomas Mun: He was one of the first mercantilists. In other words, he believed that a nation’s holdings of gold are the main measure of its wealth and that governments should regulate trade to produce an excess of exports over imports in order to gain more gold for the country. Later economists, from Adam Smith on, showed that trade is self regulating and that governments seeking to hoard gold or other hard currencies will make their countries worse off.

In our world today, most of the countries have been seeking to enjoy increasing returns to scale in international trade. It refers to a condition of decreasing cost of a unit of commodity while its output rate increasing. The correct answer is A.

There are three types of tariffs: specific, advalorem, and compound. Specific tariffs are measured in accordance with a physical unit of measurement, such as on a per-ton, per-bushel, or per-meter rate, and are specified at a particular monetary value. Ad-valorem tariffs are measured on the value of the goods and are levied as a percentage of that value. Finally, Compound tariffs are a combination of ad-valorem and specific.

Protectionism simply denotes the defensive measures of a government in order to protect its local industries from overseas competition.

Ad-valorem tariff is a tariff rate charged as a percentage of the price. Under a system of ad-valorem tariffs, for example, an individual importing a $20,000 Volkswagen would have to pay a higher duty than a person importing a $19,900 Opel.

Import tariffs hurt consumers who would like to buy products made in abroad. The consumers may want to save money over domestically produced products, or they may comprehend a degree of quality that is missing in domestically produced products.

General Agreement on Tariffs and Trade (GATT).

World Trade Organization (WTO).

See the  Chart 5.1 Groups of Non-Tariff Restrictions.

Tariff Quotas: A tariff quota allows the import of a certain amount of a commodity duty-free or at a lower duty rate while amounts exceeding the quota are subject to a higher duty rate

Dumping: Dumping is a sale of goods abroad at low a price, below their cost and price in the home market.

International Cartels: An international cartel is an arrangement to avoid some or all forms of competition, the parties to which are business enterprise domiciled under more than one government and trading across national frontiers.

A tariff surges the price of the imported products, sometimes uplifting its status to that of a luxury product. Therefore, a tariff could be imposed on certain imported products to make sure that only a few people have an enough supply for those imports. The more expensive an imported product becomes, the fewer people can afford to buy it. Thus, a tariff may be used to ensure or maintain the status of a luxury product.

Import tariffs hurt consumers who would like to buy products made in abroad. The consumers may want to save money over domestically produced products, or they may comprehend a degree of quality that is missing in domestically produced products.

GATT Article II obligates members to impose tariff rates that are no higher than their bound rates. According to WTO, “Bound rate is the maximum rate of duty (tariff) that can be imposed by the importing country on an imported commodity. Here, each country commits itself to a ceiling on customs duties (tariff) on a certain number of products. These rates vary from country to country and commodity to commodity. But no country can raise duties above the bound rate it has committed, and the rate of customs duty actually applied may be lower than the bound rate.

Generally, domestic manufacturers competing in opposition to imports will get advantage from a tariff. If a government places a tax on imports of a product, the domestic price of the imported product will increase.One of the important benefits of tariffs is that they act as the revenue of government. The effects of a tariff on the well-being of consumers and producers do not exhaust its effects on the importing country. Imposing a tariff with an optimal basis on exporting countries brings revenue to the country’s government.

When a country can gain by imposing a tariff, we might ask what the best possible tariff level is. This is known as the optimal tariff issue. Conventionally, the term “optimal tariff” refers to the tariff justified by the terms of trade argument. The terms of trade argument for tariffs is based on the assumption that countries are large enough to influence the world relative prices of their imports and exports.

Predatory dumping is the temporary sale of a commodity at below cost or at a lower price abroad as a way to drive overseas producers out of enterprise, and then prices are raised to take advantage of the newly obtained monopoly energy overseas.

An international cartel is an arrangement to avoid some or all forms of competition, the parties to which are business enterprise domiciled under more than one government and trading across national frontiers. Such a cartel may include the major enterprises which operate in a given industrial field throughout the world.