Non Tariff Barriers

Question 1

Quota

Answer 1

Restricts quantity of a good that can be imported.

Question 2

Free allocation

Answer 2

Area c is a redistribution of well being from consumers to importers.

Question 3

Auctions

Answer 3

C is collected by government - same as tariff.

Question 4

Selective

Answer 4

C is lost in rent seeking activities.

Question 5

Voluntary export restriction

Answer 5

When foreign export countries impose restrictions/quotas on themselves.

Area c - transfer from consumers in importing country to producers in exporting country.

Question 6

Product standards

Answer 6

Noble efforts to enhance society’s well being by addressing market failures that lead to unsafe conditions and environmental degradation. Doesn’t generate revenue but does incur admin costs. Eg EU bans import of beef that have received growth hormones.

Question 7

Domestic content requirement

Answer 7

Products produced and sold in a country must have a specified amount of domestic production value.

Question 8

Gov procurement

Answer 8

Gov is normally biased against foreign products to support local producers. E.g police cars.