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Chapter 9

Nontariff Barriers to Imports

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

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Slide17
知识点8
案例4
习题60

Knowledge Points

知识点

manual

The Import Quota

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

  • An import quota is a limit on the total quantity of imports of a product allowed into the country during a period of time.
  • Reasons why protectionists and government officials may favor quotas:
  • A quota ensures the quantity of imports is strictly limited.
manual

Types of Nontariff Barriers to Imports

After describing the types of nontariff barriers to imports, the text of the chapter develops the analysis of an import quota. If both the domestic industry and the foreign export industry are perfectly competitive, then the effects of a quota are almost all the same as the effects of a tariff that permits the same quantity of imports.

  • Nontariff Barriers to Imports
manual

Voluntary Export Restraints

The VER is usually not voluntary, but it is an export restraint. Because the government of the exporting country must organize its exporters into a kind of cartel, they should realize that they should raise the export price. If the exporters do raise the export price, then the exporters get the amount that otherwise would be government revenue with a tariff, or the price markup with an import quota.

  • A voluntary export restraint is an odd-looking trade barrier in which the importing country government compels the foreign exporting country to agree to “voluntarily” limit its exports to the importing country.
  • The export restraint usually requires that the foreign exporting firm act as a cartel by restricting sales and raising price.
manual

How Big Are the Costs of Protection?

How relatively large are the economic costs of tariffs, quotas, VERs, and other nontariff barriers to imports? The chapter shows that the net national loss is probably a small fraction of the value of domestic production (GDP), for a country like the United States that has moderate import barriers and is not highly dependent on imports, if the only national losses are the deadweight-loss triangles.

  • The net national loss as a percentage of GDP:
  • Tariff rate
  • % reduction in imports
manual

International Trade Disputes

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

  • Key WTO activities:
  • Forum for multilateral trade negotiations. Current Doha Round, now suspended
  • Administers trade agreements.
manual

Protecting Domestic Producers against Import Competition

The chapter then examines three other NTBs based on product standards, domestic content requirements, and government procurement. Product standards can be worthy efforts to protect health, safety, and the environment. But they can also be written to limit imports and protect domestic producers. Domestic content requirements mandate that a minimum percentage of the value of a product produced or sold in a country be local value added (including domestically produced components and materials).

  • • Clearly helps those domestic producers.
  • • Harms domestic consumers of the products.
  • • Probably hurts the importing nation as a
manual

The Effects of a Quota

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

  • An import quota is a limit on the total quantity of imports of a product allowed into the country during a period of time.
  • Reasons why protectionists and government officials may favor quotas:
  • A quota ensures the quantity of imports is strictly limited.
manual

Area

Early in the chapter the second in the series of boxes on Global Governance examines the role of the WTO in limiting and reducing NTBs. Recent rounds of multilateral trade negotiations have included NTBs, but with less success in lowering them than the WTO has had with tariffs. The box also discusses how the WTO has extended into nontraditional areas.

  • A quota results in a higher price and larger production quantity, so domestic producers gain surplus equal to Area
  • With a higher price and smaller consumption quantity, domestic consumers lose surplus equal to Area

Cases

案例与情境

The final section of the chapter examines international trade disputes a ...

The final section of the chapter examines international trade disputes and how they can be resolved. The GATT had a dispute settlement procedure, but it was weak and became increasingly ineffective. The United States moved outside of the GATT by enacting Section 301 of the U.S. Trade Act of 1974, which aims to lower foreign barriers to U.S.

查看原始摘录

The final section of the chapter examines international trade disputes and how they can be resolved. The GATT had a dispute settlement procedure, but it was weak and became increasingly ineffective. The United States moved outside of the GATT by enacting Section 301 of the U.S. Trade Act of 1974, which aims to lower foreign barriers to U.S. exports by threatening to raise U.S. barriers to the foreign country’s exports if the foreign country does not change its policies. Other countries have resented such a heavy-handed unilateral approach, and well-being for both countries would probably decline if the U.S. government carries out the threat. Fortunately, the United States decreased its use of Section 301; the U.S. government is more likely to send its complaints about unfair foreign trade practices to the WTO for resolution. But, in a Section 301 case that began in 2017, the U.S. governm

VERs: Two Examples: In 1981 the U.S. government forced the Japanese ...

VERs: Two Examples: In 1981 the U.S. government forced the Japanese government to impose a “voluntary” export restraint, so that total Japanese automobile exports in 1981 had to be 8 percent less than the total exports in 1980. The Japanese government told Honda (and each of the other Japanese auto companies) the maximum number of cars that the company could export to the United States.

查看原始摘录

VERs: Two Examples: In 1981 the U.S. government forced the Japanese government to impose a “voluntary” export restraint, so that total Japanese automobile exports in 1981 had to be 8 percent less than the total exports in 1980. The Japanese government told Honda (and each of the other Japanese auto companies) the maximum number of cars that the company could export to the United States. With quantity strictly limited, Honda raised the prices of the cars that they did export. For the Civic, the increase was about $1,000. When your grandfather went to the Honda dealer to buy a new Civic, he saw and paid the higher price. Essentially, a slice of area c in a graph like Figure 9.2 was the extra $1,000 that your grandfather had to pay for the Civic in 1981 (above what he would have paid for a new Civic in 1980).

The VER is usually not voluntary, but it is an export ...

The VER is usually not voluntary, but it is an export restraint. Because the government of the exporting country must organize its exporters into a kind of cartel, they should realize that they should raise the export price. If the exporters do raise the export price, then the exporters get the amount that otherwise would be government revenue with a tariff, or the price markup with an import quota.

查看原始摘录

The VER is usually not voluntary, but it is an export restraint. Because the government of the exporting country must organize its exporters into a kind of cartel, they should realize that they should raise the export price. If the exporters do raise the export price, then the exporters get the amount that otherwise would be government revenue with a tariff, or the price markup with an import quota. The net national loss is larger for the importing country with a VER because of this additional rectangle loss. The box “VERs: Two Examples” discusses (1) the costs to the United States of the VER on imports of Japanese automobiles and (2) the web of export restraints that developed to limit international trade in textile and clothing products.

This chapter has four major purposes: Present analysis of an import ...

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

查看原始摘录

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

Exercises

习题与答案

题目 1The Import Quota

Restricting imports into a small country by the government

  • A) protects domestic producers from foreign competition.
  • B) increases consumer welfare in the country.
  • C) increases the general welfare of the importing nation.
  • D) all of the above.

正确答案：A | protects domestic producers from foreign competition.

难度：1 Easy Bloom's：Remember

题目 2Types of Nontariff Barriers to Imports

Which of the following is NOT true of nontariff barriers to imports?

  • A) Nontariff barriers can limit imports with greater certainty than tariffs.
  • B) Unlike tariffs, nontariff barriers do not increase the price of imported goods in the domestic markets.
  • C) Some nontariff barriers create uncertainty about the conditions under which imports will be permitted.
  • D) Like tariffs, nontariff barriers result in a net welfare loss in a small country.

正确答案：B | Unlike tariffs, nontariff barriers do not increase the price of imported goods in the domestic markets.

难度：1 Easy Bloom's：Remember

题目 3The Import Quota

One of the reasons protectionists and government officials may favor using a quota instead of a tariff is

  • A) quotas generate more revenue for the government than tariffs.
  • B) quotas ensure that the quantities of imports are strictly limited.
  • C) quotas create less market distortions than tariffs.
  • D) quotas give less power to politicians than tariffs.

正确答案：B | quotas ensure that the quantities of imports are strictly limited.

难度：1 Easy Bloom's：Remember

题目 4The Import Quota

Which of the following is true of a quota?

  • A) Imposition of a quota causes domestic prices to fall below world prices.
  • B) Imposition of a quota by a country causes the world price of the good imported by this country to rise.
  • C) A quota is a quantitative restriction on imports.
  • D) A quota is usually less inefficient than a tariff.

正确答案：C | A quota is a quantitative restriction on imports.

难度：1 Easy Bloom's：Remember

题目 5The Import Quota

Under which of the following situations will a tariff imposed by a country fail to reduce imports by as much as expected?

  • A) The current tariff rate is less than the prohibitive tariff rate.
  • B) The foreign export quantity supplied of the good imported by this country is more responsive to changes in the world price than was expected.
  • C) The domestic supply of the import-competing products is more price-elastic than was expected.
  • D) The domestic quantity demanded of the imported product is less responsive to price changes than was expected.

正确答案：D | The domestic quantity demanded of the imported product is less responsive to price changes than was expected.

难度：2 Medium Bloom's：Understand

题目 6The Import Quota

In the case of a small country, the effects of a quota and a tariff are (almost) identical if

  • A) the government allocates licenses for free to importers using a rule or process that involves (almost) no resource cost.
  • B) the government auctions off import licenses to the highest bidder.
  • C) the government allocates licenses to importers through application and selection procedures that require the use of substantial resources.
  • D) the government allocates import licenses directly to the public using a free lottery system.

正确答案：B | the government auctions off import licenses to the highest bidder.

难度：1 Easy Bloom's：Remember

题目 7The Import Quota

Which of the following is a means of allocating import licenses by assigning the licenses without competition, applications, or negotiation?

  • A) Fixed favoritism
  • B) Resource-using application procedures
  • C) Domestic content requirements
  • D) None of the above

正确答案：A | Fixed favoritism

难度：1 Easy Bloom's：Remember

题目 8The Import Quota

The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. How many MP3 players can be imported from abroad after the quota is imposed?

  • A) 2 million
  • B) 5 million
  • C) 12 million
  • D) 17 million

正确答案：B | 5 million

难度：3 Hard Bloom's：Apply

题目 9The Import Quota

The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. The quota on MP3 players will cause domestic producers to

  • A) gain $150 million.
  • B) lose $100 million.
  • C) gain $110 million.
  • D) lose $120 million.

正确答案：C | gain $110 million.

难度：3 Hard Bloom's：Apply

题目 10The Import Quota

The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. The quota on MP3 players will cause domestic consumers to

  • A) lose $25 million.
  • B) gain $25 million.
  • C) lose $170 million.
  • D) lose $195 million.

正确答案：D | lose $195 million.

难度：3 Hard Bloom's：Apply

题目 11The Import Quota

The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. According to the figure, how much revenue can the government expect to receive if the import licenses are auctioned?

  • A) $20 million
  • B) $50 million
  • C) $120 million
  • D) $170 million

正确答案：B | $50 million

难度：3 Hard Bloom's：Apply

题目 12The Import Quota

The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. If the government auctions the import licenses, the quota on MP3 players will result in a(n) ________ in the national well-being by

  • A) decrease; $35 million.
  • B) decrease; $85 million.
  • C) increase; $50 million.
  • D) increase; $195 million.

正确答案：A | decrease; $35 million.

难度：3 Hard Bloom's：Apply

Manual Preview

教师手册摘录

This chapter has four major purposes: Present analysis of an import quota and a voluntary export restraint (VER), for both a small importing country and a large one. Provide an overview of other nontariff barriers (NTBs) to imports. Explore the relative sizes of the economic costs of tariffs and nontariff barriers. Continue the discussion of the World Trade Organization (WTO), including its role in liberalizing NTBs and its role in the settlement of international trade disputes.

Governments use a variety of other barriers to imports in addition to tariffs. The chapter begins with examples of nontariff barriers to imports and several kinds of effects that they can have. NTBs lower imports by directly limiting the quantity of imports (e.g., import quota, VER, government procurement policies that prohibit or limit government purchasing of imports), increasing the costs of getting imports into the market (e.g., product standards and testing procedures), and creating uncertainty about whether imports will be permitted (e.g., arbitrary licensing procedures).

Early in the chapter the second in the series of boxes on Global Governance examines the role of the WTO in limiting and reducing NTBs. Recent rounds of multilateral trade negotiations have included NTBs, but with less success in lowering them than the WTO has had with tariffs. The box also discusses how the WTO has extended into nontraditional areas. The Uruguay Round, completed in 1993, began the process of liberalizing trade in agricultural products, established rules about protecting patents, copyrights, and trademarks, and began the process of setting rules for trade in services. The box concludes by examining the failure of the Doha Round to reach a broad agreement and WTO’s shift to achieving narrower multilateral agreements. (Later in the chapter, another box looks at “China in the WTO.”)

Also early in the chapter, the box “Dodging Protectionism,” the second in the series on the global financial and economic crisis, contrasts the big increase in protectionism during the Great Depression of the 1930s with the remarkably small increase in import barriers during the recent crisis.

Slide Outline

课件线索

  • Protecting Domestic Producers against Import Competition
  • The Import Quota
  • The Effects of a Quota
  • Area
  • Fixed Favoritism
  • Auction
  • Resource-Using Procedures
  • Voluntary Export Restraints (VERs)
  • Other Nontariff Barriers
  • How Big Are the Costs of Protection?
  • World Trade Organization (WTO)
  • World Trade Organization: Dispute Settlement

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