Use the data in the first table of Global Insights 6.1 to calculate U.S. tariff revenues on
Question:
Use the data in the first table of Global Insights 6.1 to calculate U.S. tariff revenues on costume jewelry, glass and glassware, and rubber footwear.
Transcribed Image Text:
Global Insights 6.1 The Welfare Costs of Tariffs: Estimates from Certain U.S. Industries Although current U.S. tariffs are quite low on average, tar- iffs remain high for some products. In 1994, Gary Hufbauer and Kimberly Ann Elliott from the Peterson Institute of International Economics (PIIE) published an analysis of the welfare costs of tariff protection in those industries where U.S. tariffs are especially high.* Some of their find- ings are presented in the table below. The information in the table includes consumer cost, the loss in consumer sur- plus due to the tariff (i.e., in terms of our analysis: $a + $b + $c + $d); producer gain, increased profits due to the tariff (i.e., $a); and deadweight costs of the tariff (i.e., $b + $d). Also included in a table is a measure of the consumer cost per job "saved" because of the presence of the tariff. The table shows that the consumer cost of protection, even on relatively small items in the total consumption bas- ket of the U.S. economy, can be large. What is even more dramatic than the overall costs is the extraordinarily high cost imposed upon consumers in order to maintain employ- ment levels in import-competing industries. This illustrates the relative inefficiency of a tariff as a job-creating policy measure. The PIIE study was undertaken using U.S. industrial and tariff level data from the late 1980s. Since then, there have been significant changes in the structure of American manufacturing, and the United States has adopted the tar- iff reductions negotiated in the Uruguay Round. The U.S. International Trade Commission (USITC) has undertaken and then recently revised a study on the current welfare costs of remaining tariff and other trade barriers. As it turns out, the industries identified in the PIIE study con- tinue to benefit from significant tariff protection, and the USITC provides an updated analysis of cost to the United States of maintaining this protection. The USITC study uses a computer model of the entire U.S. economy; it then ana- lyzes and projects what would happen to the U.S. econ- omy by 2015 if these remaining tariffs had been removed in 2005. The findings it reports differ to some extent from the types of numbers found in the PIIE study. The following table provides a summary of some of the results. Several things should be noticed about the results reported in this table. First, the average tariffs even for sectors identified as having high tariff protection are very low. None of
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Madhvendra Pandey
Hi! I am Madhvendra, and I am your new friend ready to help you in the field of business, accounting, and finance. I am a College graduate in B.Com, and currently pursuing a Chartered Accountancy course (i.e equivalent to CPA in the USA). I have around 3 years of experience in the field of Financial Accounts, finance and, business studies, thereby looking forward to sharing those experiences in such a way that finds suitable solutions to your query.
Thus, please feel free to contact me regarding the same.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
In the following exercises, you will use the data in the Solmaris Condominium Group database shown in Figures 1-21 through 1-25. (If you use a computer to complete these exercises, use a copy of the...
-
In the following exercises, you will use the data in the Solmaris Condominium Group database shown in Figures 1-21 through 1-25 in Chapter 1. (If you use a computer to complete these exercises, use a...
-
During its first year, the company spent approximately $300,000 to catch 500 crocodiles. Of these, 300 crocodiles were sold and shipped to customers at a selling price of $1,000 per crocodile....
-
The Bouchard Company's EPS was $6.50 in 2015, up from $4.42 in 2010. The company pays out 40% of its earnings as dividends, and its common stock sells for $36 00. a. Calculate the past growth rate in...
-
Explain the historical cost concept as it applies to longterm operational assets. Why is the book value of an asset likely to be different from the current market value of the asset?
-
A sample of 400 high-reliability switches was placed on a life test until the first five failures occurred and the test was then terminated. The first five failures were at 268, 395, 479, 685 and 964...
-
Select the best answer. 1. A government opts to set aside $ 10 million of general-fund resources to nance a new city hall. Construction is expected to begin in several years, when the city has been...
-
How can the organization ensure that this piece of infrastructure is positioned as strategic and not just administrative?
-
Given the following information, calculate the cost to consumers, the benefit to producers, the change in government revenue, and the deadweight costs of a proposed 10 percent tariff on personal...
-
Answer the questions in Exercise 3 using the following data on factor endowments of countries C and D: data from exercise3 Consider the following data on the factor endowments of two countries, A and...
-
The reaction times (in milliseconds) of 30 randomly selected adult females to an auditory stimulus Use technology to construct a normal probability plot to determine whether the data come from a...
-
Follow the instruction using discounted cash flow to calculate EV and per share value. Only need to finish the part that instruction mentioned, these are the only sheets provided, for other value you...
-
Explain the term "Gini Coefficient" as used in economics. Describe THREE principles of the Gini Coefficient.
-
You observe the following stock price information of three US listed companies (Telecom, New Energy, and Foodie) in the table below: Date 31-May-2021 (t=0) 30-June-2021 (t=1) Telecom New Energy...
-
Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2024, Lacy received the following information: ($ in millions) Projected Benefit Obligation Balance, January 1...
-
Why did the struggling MSME owner become a magician?
-
A window air-conditioner unit is placed on a laboratory bench and tested in cooling mode using 750 W of electric power with a COP of 1.75. What is the cooling power capacity and what is the net...
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
Explore the existential crisis depicted in the absurdism movement and its philosophical implications for human existence.
-
In what ways do dystopian narratives serve as cautionary tales about societal structures and human nature?
-
When would an Army leader accept an extremely high risk?
Study smarter with the SolutionInn App