International Trade
Tariffs
Introduction
What damage can occur through protection?
Substantional income transfers inconsistent with equity
Efficiency loss
Why do we usually observe limited damage only?
"due to the very substantial flexibility of the economy"
Not because protection is not harmful
Effects of Protection (Tariffs)
Small country
Partial Equilibrium Analysis: One-Good Case
General Equilibrium Analysis: Two-Good Case
Analysis using Offer Curves
Large country
Partial Equilibrium Analysis: One-Good Case
General Equilibrium Analysis: Two-Good Case
Analysis using Offer Curves
Effective Rate of Protection
Externality and Protection
[Back] Trade Policies - Introduction
[Next] Tariffs - Small Country, Partial Equilibrium: One-Good Case
[Topic] Trade Policies