CHAPTER 8
THE INSTRUMENTS OF TRADE POLICY
Chapter Organization
Basic Tariff Analysis
Supply, Demand, and Trade in a Single Industry
Effects of a Tariff
Measuring the Amount of Protection
Costs and Benefits of a Tariff
Consumer and Producer Surplus
Measuring the Costs and Benefits
Other Instruments of Trade Policy
Export Subsidies: Theory
Case Study: Europe's Common Agricultural Policy
Import Quotas: Theory
Case Study: An Import Quota in Practice: U.S. Sugar
Voluntary Export Restraints
Case Study: A Voluntary Export Restraint in Practice: Japanese Autos
Local Content Requirements
Box: American Buses, Made in Hungary
Other Trade Policy Instruments
The Effects of Trade Policy: A Summary
Summary
Appendix I: Tariff Analysis in General Equilibrium
A Tariff in a Small Country
A Tariff in a Large Country
Appendix II: Tariffs and Import Quotas in the Presence of Monopoly
The Model with Free Trade
The Model with a Tariff
The Model with an Import Quota
Comparing a Tariff with a Quota