A Comparative Static Analysis of European Union Tariff and Support Policies for Canned Pears

Abstract

A nonlinear, partial equilibrium, Armington model of the European Union canned pear market was built and simulated for reductions in specific EU policies and for reductions in selected combinations of these policies relevant to canned pears: import tariffs, factor subsidies, and an output subsidy. Effects of these policy reductions on the following EU canned pear market variables were comparatively analyzed: own-product consumption, imports, exports, and price. Comparative analyses of these policy-specific effects were conducted from two viewpoints: the absolute magnitudes of completely eliminating, and the marginal effects of incrementally reducing, the EU policies and policy combinations. Among other findings, results suggest that EU tariff reduction enhances EU imports more than EU subsidy reduction, and that EU subsidy reduction increases EU prices more effectively than reducing EU tariffs.     

A Classroom Tariff-Setting Game

The author outlines a classroom tariff-setting game that allows students to explore the consequences of import tariffs imposed by large countries (countries able to influence world prices). Groups of students represent countries, which are organized into trading pairs. Each group's objective is to maximize welfare by choosing an appropriate ad valorem tariff that may be changed intermittently throughout the game. The game is built on a computable general-equilibrium model, which allows each nation's utility and terms of trade under alternative tariff regimes to be expressed quantitatively. The exercise encourages students to consider terms-of-trade improvements and efficiency losses resulting from large-country tariffs and provides a framework to discuss the Nash equilibrium of a tariff war. The game is a useful supplement to traditional teaching methods.     

Demonstrating Ethnocentrism

This paper presents a classroom exercise that may be used to demonstrate the concept of ethnocentrism. The exercise employs a map task that is used to indicate selective attention. The exercise is quick, informative, and generally entertaining, and it is appropriate as a teaching device wherever the marketing curriculum focuses upon international concerns.     

Critical mass of users versus critical mass of services in a multiproduct information service system

In this paper we study the economic behaviour of the suppliers of a set of advanced telecommunications services with a joint adoption cost (common access facilities, learning process, etc.). In fixing the two-part tariffs for their services the suppliers have to share the burden of leaving to the users a surplus sufficient to cover the adoption cost. The lack of coordination in supplying a critical mass of services or in the pricing decisions has high changes to result in suboptimal or unviable diffusion of the new technology as a whole. We present a static optimization model of user behaviour, and derive access and usage demand with a two-part tariff and a joint adoption cost. We compare noncooperative and cooperative market equilibria in a duopoly with perfect information; finally we discuss the extension of our analysis to the case of imperfect information in a dynamic setting.     

The impact of the Uruguay Round on tariff escalation in agricultural products

Tariff escalation (i.e. higher tariffs on processed agricultural products than on their input commodities) has been one of the obstacles for developing countries in their efforts to establish processing industries for exports. This article assesses the changes in tariff escalation resulting from the Uruguay Round (UR) tariff concessions, examining the agricultural import markets of EU, Japan and the US. The approach consisted of comparing the base and bound tariffs, as listed in the UR tariff schedules, of actual input/output processing relationships, taking also specific tariffs into account. Three main conclusions can be drawn. First, more than half of the commodity pairs have positive tariff wedges (escalating tariffs), about 10 per cent have no tariff wedges (input and output tariffs are equal) and the remaining one-third of the commodity pairs have negative tariff wedges (de-escalating tariffs). These numbers are roughly the same for both base and bound tariff wedges. Second, as a result of the UR tariff concessions more than 80 per cent of the tariff wedges have decreased (in absolute values, i.e. positive wedges have become less positive and negative wedges have become less negative). Convergence towards zero is therefore a common feature. Third, after the full implementation of the UR tariff concessions, high levels of nominal tariff escalation will still remain for a number of commodity pairs, highest in Japan and lowest in US. Considering only the positive tariff wedges, these will average 17 per cent after the implementation of the UR (down from 23 per cent of the base years). Finally, the study has certain methodological shortcomings, and a degree of caution is in order for countries contemplating export diversification and investing in valued-added industries. There are well known problems with “water in the tariffs” and the difference between applied and bound rates of duty that are common to all studies on this subject. In addition, a number of factors that are beyond the scope of this study should also be taken into account when export diversification is considered. These relate, inter alia, to the competitiveness of the export commodities or industries in question, availability of appropriate technologies and infrastructure, product standards, technical regulations and a host of consumer preference issues having to do with brand recognition as well as product characteristics.     

The common external tariff of a customs union: Alternative approaches

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Optimal trade policy in the presence of changing market structure

This study examines the optimal use of tariff policy in response to a change in both the number and market behavior of domestic firms. The paper demonstrates that under certain demand conditions, optimal trade policy may require an increase in tariffs in response to an increase in consolidation or collusion among domestic firms.     

基于电源优化选择的抽水蓄能电价设计与计算

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建立矿产资源境外风险勘查基金之我见

文章从实施矿产资源"走出去"开放战略的需求与实践两个方面,论述了建立境外矿产资源勘查开采基金的重要意义.文章作者对如何筹集、使用、管理境外矿产资源勘查开采基金谈了自己的看法.     

浅析职业教育发展热点问题及国外高职教育发展态势

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