|
Effective Rate Of Protection
In economics, the effective rate of protection (ERP) is a measure of the total effect of the entire tariff structure on the value added per unit of output in each industry, when both intermediate and final goods are imported. This statistic is used by economists to measure the real amount of protection afforded to a particular industry by import duties, tariffs or other trade restrictions. History Early work on the concept was undertaken by Clarence Barber. The idea was developed and applied to policy analysis by Max Corden. Explanation Consider a simple case: there is a tradable good (shoes) that uses one tradable input to produce (leather). Both shoes and leather are imported into the home country. Suppose that in the absence of any tariffs, shoes use $100 worth of leather to make, and shoes sell for $150 in the international markets. Shoemakers around the world add $50 of value. If the home country imposes a 20% tariff on shoes, but no tariff on leather, shoes would sell for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tradable
Tradability is the property of a good or service that can be sold in another location distant from where it was produced. A good that is not tradable is called non-tradable. Different goods have differing levels of tradability: the higher the cost of transportation and the shorter the shelf life, the less tradable a good is. Prepared food, for example, is not generally considered a tradable good; it will be sold in the city in which it is produced and does not directly compete with other cities' prepared foods. Some non-commodities and services such as haircuts and massages are also obviously non-tradable. However, in recent years even pure services such as education can be regarded as tradable due to advancements in information and communications technology. Price equalization Perfectly tradable goods, like shares of stock, are subject to the law of one price: they should cost the same amount wherever they are bought. This law requires an efficient market. Any discrepancy th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Protectionism
Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield the producers, businesses, and workers of the Import substitution industrialization, import-competing sector in the country from foreign competitors. Opponents argue that protectionist policies reduce trade and adversely affect consumers in general (by raising the cost of imported goods) as well as the producers and workers in export sectors, both in the country implementing protectionist policies and in the countries protected against. Protectionism is advocated mainly by parties that hold Economic nationalism, economic nationalist or left-wing positions, while economically right-wing political parties generally support free trade. There is a consensus among economists that protectioni ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
International Trade Theory
International trade theory is a sub-field of economics which analyzes the patterns of international trade, its origins, and its welfare implications. International trade policy has been highly controversial since the 18th century. International trade theory and economics itself have developed as means to evaluate the effects of trade policies. Adam Smith's model Adam Smith describes trade taking place as a result of countries having absolute advantage in production of particular goods, relative to each other. Within Adam Smith's framework, absolute advantage refers to the instance where one country can produce a unit of a good with less labor than another country. In Book IV of his major work ''the Wealth of Nations'', Adam Smith, discussing gains from trade, provides a literary model for absolute advantage based upon the example of growing grapes from Scotland. He makes the argument that while it is possible to grow grapes and produce wine in Scotland, the investment in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Total Support Estimate
The total support estimate (TSE) is an Organisation for Economic Co-operation and Development (OECD) indicator of the annual monetary value of all gross transfers from taxpayers and consumers arising from policy measures that support agriculture, net of the associated budgetary receipts, regardless of their objectives and impacts on farm production and income, or consumption of farm products. The TSE can be expressed in monetary terms or as a percentage of the gross domestic product. In addition to the TSE, other measures used to compare levels of support to agriculture across counties include the producer support estimate (PSE), consumer support estimate The Consumer support estimate (CSE) is an OECD indicator of the annual monetary value of gross transfers to (from) consumers of agricultural commodities, measured at the farm gate level, arising from policy measures which support agriculture, regard ... (CSE), and general services support estimate (GSSE). References *{{CRS, arti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Support Estimate
The Consumer support estimate (CSE) is an OECD indicator of the annual monetary value of gross transfers to (from) consumers of agricultural commodities, measured at the farm gate level, arising from policy measures which support agriculture, regardless of their nature, objectives or impacts on consumption of farm products. The CSE can be expressed in monetary terms; as a ratio to the value of consumption expenditure valued at farm gate prices, including budgetary support to consumers (percentage CSE); or as a ratio to the value of consumption expenditure valued at world market prices, without budgetary support to consumers. See also *Effective rate of protection *Producer support estimate * General services support estimate *Total support estimate The total support estimate (TSE) is an Organisation for Economic Co-operation and Development (OECD) indicator of the annual monetary value of all gross transfers from taxpayers and consumers arising from policy measures that support agri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tariff
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. ''Protective tariffs'' are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade. Tariffs can be fixed (a constant sum per unit of imported goods or a percentage of the price) or variable (the amount varies according to the price). Taxing imports means people are less likely to buy them as they become more expensive. The intention is that they buy local products instead, boosting their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products. Tariffs are meant to reduce pressure from foreign competition and reduce th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Max Corden
Warner Max Corden AC (born 13 August 1927) is an Australian economist. He is mostly known for his work on the theory of trade protection, including the development of the dutch disease model of international trade. He has also been active in the fields of international monetary systems, macroeconomic policies of developing countries and Australian economics. Corden, originally German, emigrated from Nazi Germany to Melbourne in 1939. Academic career After completing high school at the academically reputed Melbourne High School, Corden graduated from the University of Melbourne in 1950 and obtained his PhD in economics at the London School of Economics (1956). He was subsequently Nuffield Reader in International Economics and Fellow of Nuffield College at Oxford University, and from 1977 to 1988 he was Professor of Economics at the Australian National University. Furthermore, he was senior advisor in the Research Department of the International Monetary Fund from 1986 until 1988 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Value Added
In business, total value added is calculated by tabulating the unit value added (measured by summing unit profit sale price and production cost">Price.html" ;"title="he difference between Price">sale price and production cost], unit depreciation cost, and unit Direct labor cost, labor cost) per each unit of product sold. Thus, total value added is equivalent to revenue minus intermediate consumption. Value added is a higher portion of revenue for integrated companies (e.g. manufacturing companies) and a lower portion of revenue for less integrated companies (e.g. retail companies); total value added is very closely approximated by compensation of employees, which represents a return to labor, plus earnings before taxes, representative of a return to capital. In economics, specifically macroeconomics, the term value added refers to the contribution of the factors of production (i.e. capital and labor) to raise the value of the product and increase the income of those who own the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Clarence Barber
Clarence Lyle Barber (May 5, 1917 – February 27, 2004) was a Canadian economist and academic. Born in Wolseley, Saskatchewan, he received a B.A. in economics from the University of Saskatchewan in 1939. He won a scholarship to Clark University where he obtained his M.A. in 1941 and he received a Ph.D. in 1952 from the University of Minnesota. He taught economics at the University of Manitoba from 1949 to 1982 and served as head of the department from 1963 to 1972. Barber also taught at McMaster University, Queen's University, McGill University, and the University of Victoria. His professional interests included macroeconomic theory, international economics, and monetary theory. Barber's best known theoretical contribution was his formulation of the concept of the effective rate of protection. He spent the year 1959-60 living in Manila, Philippines as an advisor working for the United Nations providing assistance to the 1960 Census. Effects of the Great Depression in his yo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trade Restriction
A trade restriction is an artificial restriction on the trade of goods and/or Service (economics), services between two or more Country, countries. It is the byproduct of protectionism. However, the term is controversial because what one part may see as a trade restriction another may see as a way to Consumer protection, protect consumers from inferior, harmful or dangerous products. Examples German purity laws: Beer Germany required the production of beer to adhere to Reinheitsgebot, its purity law. The law, originally implemented in Bavaria in 1516 and eventually becoming law for Unification of Germany, newly unified Germany in 1871, made many foreign beers unable to be sold in Germany as "beer". This law was struck down in 1987 by the European Court of Justice, but is still voluntarily followed by many German breweries. US motor vehicle headlamps Rectangular headlamps were promoted in the United States where round lamps were required until 1975. By 1979, the majority of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
.png "Click for more on -> Tariff")