Question

You are a policy maker. Name and describe situation(s) where it is beneficial to do the followings. Briefly support your choice using economic arguments. A possible answer can be never!

1. Utilizing general equilibrium analysis to study the impact of protection.

2. Measuring tariff rates using effective rate of protection.

3. Using trade taxes as a source of government revenue.

4. Imposing import tariffs to extract a foreign monopoly profit.

5. Imposing import tariffs to offset a foreign production subsidy.

Answer 1

Ans.
As a policy maker a possible answer can never be to Using trade taxes as a source of government revenue.
The tariff-for-income contention has been conjured over and over in later a long time to legitimize protectionism. It is inspired by the conviction that a nation with advertise force can utilize trade duties to raise income from remote purchasers and makers indeed, even huge nations have restricted market power
So, previously reprisal by exchanging accomplices, the normal nation can valuably supplant just 16% of its residential expense incomes with trade charges.
After counter, be that as it may, half of the gathered trade charge incomes vanish, governments are compelled to expand local duties to counter their contracting charge base, furthermore, genuine GDP drops no matter how you look at it by a normal of 7%.
On the other side, these discoveries show the additions from multilateral trade understandings are likewise 30% bigger once we represent the financial expense of trade wars.
Other strategies are good to pursue as policy maker.