<4.2.1 TARIFFS>

--THINK & SKETCH--

"As we all know the best players in the world come from South America, and their transfer fees are significantly cheaper when compared to their domestically produced alternatives, due to lower costs of production, specialisation etc..., however the extra costs involved in arranging work-permits, visas, agent fees etc... makes the transfer price higher. Can you 'sketch' an international trade diagram to illustrate this scenario?" , "How do these extra costs, coupled with the risk of them being homesick, result in more domestic players getting a chance?"

--DEFINITION--

TARIFFS, also known as 'CUSTOMS DUTIES', are TAXES ON IMPORTED GOODS and the most common form of trade protection. Tariffs have two purposes.
- - - 1) The first is to protect a domestic industry from foreign competition and is called a PROTECTIVE TARIFF.
    - 2) The second purpose is to raise revenue for the government, and this is called a REVENUE TARIFF.

--MARKET EFFECTS--

--WINNERS & LOSERS--

--WELFARE IMPACTS--

--HIGHER LEVEL ONLY--

--DOWNLOAD HERE: QP MS--

DOWNLOAD LINKS: QP MS

--TASK--

Almost all the cases of dumping that make the headlines involve export subsidies given to exporters that already have significant market shares such as China and the solar panel market, therefore the additional exports they produce thanks to the subsidies actually impact world supply enough to actually lower it, which makes the dumped price even lower, threatening domestic producers further.
Can you sketch a 2 country diagram to model this?

--PAST PAPER 2 4-MARKER TASK--

Using an international trade diagram, explain the likely impact of the removal of import quotas on North Macedonia’s production of wine.

Using an international trade diagram, explain how a subsidy could help Tanzanian dairy farmers compete against imported dairy products.

Using an international trade diagram for the US market, explain how the imposition of a 15 % tariff on imported garments from Bangladesh would affect the revenue earned by Bangladeshi producers.

Using an international trade diagram, explain the effect on consumers in Uruguay if a quota is imposed on cheese imports from the EU.

Using an international trade diagram, explain the effect on domestic chicken producers revenues in Singapore if a production subsidy is removed.

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