MGC2120 Chapter Notes - Chapter 7: Voluntary Export Restraints, Import Quota, Ad Valorem Tax

• School: Monash University
• Department: Management
• Course: MGC2120
• Professor: Dr Lakmal Abeysekera

Document Summary

International business chapter 7 the political economy of. Firstly, tariffs are generally pro- producer and anti- consumer. Secondly, import tariffs reduce the overall efficiency of the world eco. is a government payment to a domestic producers. May take forms of cash grants, low- interest loans, tax breaks, and government equity participation in domestic firms. Subsidies help domestic producers by 1: competing against foreign imports, Agriculture has large subsidies compare to non- agriculture. Main gains accrue to domestic producers. Tariff rate quota: hybrid of a quota and tariff. Lower tariff rate is applied to imports within the quota than those over quota. Voluntary export: a quota on trade imposed by the exporting country, at the request of the importing country"s government. Can be expressed in either physical terms of in value terms. Also used in developed countries. Bureaucratic rules designed to make it difficult for imports to enter a country. Import quotas and voluntary export restraints.