The optimum tariff means:
Must occur in the elastic range of the partner country's offer curve
For a large country choosing a welfare-maximizing tariff without retaliation, the optimum lies on the elastic portion of the trading partner’s offer curve. Restricting trade while on its inelastic portion can improve the terms of trade further; the optimum balances the terms-of-trade gain against domestic distortions.
Important Questions from Government intervention in international trade - Teaching
Match List I with List II
List I
(Tariff/Subsidy)
List II
(Explanation)
A. Tariffication I. They have demonstrably adverse effects on other member countries. B. Prohibited subsidies II. They act on goods which are contingent upon export performance. C. Actionable subsidies III. Replacement of existing non-tariff restrictions. D. Non-actionable subsidies IV. For industrial research in disadvantaged regions. Choose the correct answer from the options given below:
In theory, several levels of economic integration are possible. Arrange the following from the least to the most integrated:
A. Common Market
B. Free Trade Area
C. Economic Union
D. Political Union
E. Customs Union
Choose the correct answer from the options given below
Which one of the following is the main government agency responsible for development and monitoring international trade in India?
Match the items of List - II with List - I to identify the correct code which are related to legal forces affecting international marketers.
List - I List - II (a) Tariff (i) A regulation specifying the proportion of a finished
product’s components and labour that must be provided
by importing country.(b) Import Quota (ii) Tax imposed on product entering a country and used to
protect domestic producers and/or raise revenue.(c) Local-content Law (iii) A requirement that a product contain or exclude certain
ingredients or that it be tested and certified as meeting
certain restrictive standards.(d) Local-operating Law (iv) Limiting amount of a particular product that can be
brought into a country, to protect domestic industry or
broadening access to its markets.(e) Standards and Certification (v) A refusal to buy products from a particular company or
country(f) Boycott (vi) A constraint on how, when or where retailing can be
conductedAssertion (A): An export processing zone is different from free trade zone as it promotes units primarily devoted to exports.
Reasoning (R): Goods imported to a free trade zone may be re-exported without any processing, in the same form. But, goods exported by units in an EPZ are expected to have undergone some value addition by manufacturing/processing
