Chapter 7 Flashcards
1
Q
Seven conditions affecting transport costs: (factors and examples)
A
- Geography - distance, accessibility
- Type of product - weight, packaging
- Economies of scale - size of shipment
- Trade imbalance - empty travel
- Infrastructure - capacity
- Mode - capacity, fuel
- Competition and regulation - tax
2
Q
What makes a good tariff?
A
According to cost:
- Revenue sufficiency
- Economic efficiency
- Equity and fairness
More practically:
- Simple and easy to understand
- Revenue stability
- Easy to implement
