Instruments of Trade Policy Flashcards by Loïck Lépine | Brainscape

Q

How can we derive a country’s import demand curve?

A

Supply - Demand.

Note that the curve is more reactive to price changes

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Q

How acn we derive a country’s export supply curve?

A

Demand - Supply.

Note that the curve is more reactive to price changes

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Q

What is the effective rate of protection?

A

value added after duty is imposed - Domestic value added under free trade / value added after duty is imposed

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