What Is Protectionism?
The video names four tools: a tariff, a quota, a subsidy and a rule.
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1.What is protectionism?
The video names four tools: a tariff, a quota, a subsidy and a rule.
2.An imported bicycle costs 200 and the tariff is 15 percent. What does it cost at the border?
Step one: 15 percent of 200 is 30. Step two: the bicycle becomes 230 at the border.
3.For 100 imported bicycles with a tariff of 30 each, how much does the state collect?
For 100 bicycles, the state collects 3,000, a customs duty that does not go to the shop.
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Sources (9)
- WTO: Understanding the WTO - principles of the trading system
- WTO: Understanding the WTO - Agreements: Goods (Zoelle, Bindungen, Tarifizierung)
- Hamilton, A.: Report on the Subject of Manufactures (5. December 1791), Volltext constitution.org
- 19 U.S.C. § 1862 "Safeguarding national security" (Trade Expansion Act of 1962, Section 232), Cornell Legal Information Institute
- WTO: Safeguard measures (Schutzklauselmassnahmen)
- Greenlaw, S., Shapiro, D., MacDonald, D.: Principles of Economics 3e, OpenStax 2022, Kap. 34.1
- U.S. Department of State, Office of the Historian: Protectionism in the Interwar Period (Milestones 1921-1936)
- Eigene Rechnung: Zoll, Quote
- Eigene Rechnung: Zoll, Quote und Subvention auf Fahrraeder (Uebungsaufgabe)
Education only. Not financial advice.