国际经济学-贸易政策工具英文版.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * An export subsidy raises prices in the exporting country while lowering them in the importing country. In addition, and in contrast to a tariff, the export subsidy worsens the terms of trade. An export subsidy unambiguously leads to costs that exceed its benefits. Other Instruments of Trade Policy Figure 8-12: Europe’s Common Agricultural Program Other Instruments of Trade Policy Price, P Quantity, Q S D EU price without imports World price = cost of government subsidy Support price Exports Voluntary Export Restraints A voluntary export restraint (VER) is an export quota administered by the exporting country. It is also known as a voluntary restraint agreement (VRA). VERs are imposed at the request of the importer and are agreed to by the exporter to forestall other trade restrictions. Other Instruments of Trade Policy Local Content Requirements A local content requirement is a regulation that requires that some specified fraction of a final good be produced domestically. This fraction can be specified in physical units or in value terms. Local content laws have been widely used by developing countries trying to shift their manufacturing base from assembly back into intermediate goods. Other Instruments of Trade Policy Local content laws do not produce either government revenue or quota rents. Instead, the difference between the prices of imports and domestic goods gets averaged in the final price and is passed on to consumers. Example: Suppose that auto assembly firms are required to use 50% domestic parts. The cost of imported parts is $6000 and the cost of the same parts domestically is $10,000. Then the average cost of parts is $8000 (0.5 x $6000 + 0.5 x $10,000). Firms are allowed to satisfy their local content requirement by exporting instead of using parts domestically. Other Instruments of Trade Policy Other Trade Policy Instruments Export credit subsidies A form of a subsidized loan to