1.What is meant by an ad valorem, a specific, and a compound tariff? Are import or export tariffs

more common in industrial nations? in developing nations?

2. What is the primary function of tariffs in industrial nations? in developing nations?

3. When is partial equilibrium analysis of a tariff justified? How is this performed?

4. What is meant by the consumption, production, trade, revenue, and redistribution effects of a tariff? Show with graph

5. What is meant by the protection cost, or deadweight loss, of a tariff? How is this measured?

Calculate with the help of graph.

6. What is the difference between a nominal tariff and an effective tariff? What is the usefulness of the concept of effective protection? How is the rate of effective protection measured?

7. What is the tariff structure of developed nations? Why is this of special concern to developing

nations? What is the most serious shortcoming of the concept and measure of effective protection?

8. Using general equilibrium analysis, indicate the effect of an import tariff imposed by a small nation on the relative commodity price of the importable commodity for individuals in the nation and for the nation as a whole.

9. What is meant by the optimum tariff? What is its relationship to changes in the nation' s terms of trade and volume of trade?

10.Calculate the rate of effective protection when t (the nominal tariff on the final commodity) is 40 percent, ai(the ratio of the cost of the imported input to the price of the final commodity in the absence of tariffs) is 0.5, and ti (the nominal tariff on the imported input) is 40 percent.

11. For the given in Problem 10, recalculate g with the following values of ti :

(a) ti = 20 percent.

(b) ti = 0.

(c) ti = 80 percent.

(d) ti = 100 percent

12. What is the concept of dumping? Discuss the economics of Dumping.

13.What are the arguments in favour of and against of free trade?

14. Discuss the role of foreign direct investment and multinational corporations in developing countries.

15. What is an import quota? How is it mostly used today? What are the partial equilibrium effects of an import quota? How are they similar to and different from the effects of an equivalent import tariff?

16. What is meant by voluntary export restraints? How has the United States used them?

17. What are the technical, administrative, and other nontariff barriers to trade? How do they restrict trade? What is the importance of these nontariff trade barriers relative to tariff barriers?

18. What is meant by dumping? What are the different types of dumping? Why is dumping undertaken? What conditions are required to make dumpingpossible? Why does dumping usually lead to trade restrictions?

19. What are the fallacious and questionable arguments for protection? Why are they fallacious and questionable?

20. What is the infant-industry argument for protection? How must this argument be qualified?

21. What are the other qualified arguments for protection? In what way must they be qualified?

22. What did the Uruguay Round accomplish? Why do we need the Doha Round?