题目内容
A tariff can increase the welfare of a ''large'' levying country if the favorable terms-of- trade effect more than offsets the unfavorable protective effect and consumption effect.
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An import tariff will worsen the terms of trade for a ''small'' country but improve the terms of trade for a "large'' country.
If the world price of steel is $600 per ton, a specific tariff of $120 per ton is equivalent to an ad valorem tariff of 25 percent.
There is widespread agreement among economists that import tariffs increase overall employment in the levying country.
Assume that the United States imports VCRs from South Korea at a price of $200 per unit and that these VCRs are subject to an import tariff of 20 percent. Also assume that U.S. components are used in the VCRs assembled by South Korea and that these components have a value of $100. Under the Offshore Assembly Provision of U.S. tariff policy, the price of an imported VCR to the U.S. consumer after the tariff has been levied is $220.
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