W8 Tariffs: Small and Large Country Flashcards
1
Q
what is a tariff?
A
Import tariff = tax or duty on imported goods or services
Export tariff = tax on exported goods or services
2
Q
examples of tariffs
A
Ad valorem tariff : fixed percentage tax on traded commodity
Specific tariff: fixed tax per unit of a traded commodity
Compound tariff: combination of an ad valorem and specific tariff.
3
Q
what is a small country?
A
a small country is one where changes in its domestic market do not alter the international price of the commodity
4
Q
what is a large country?
A
a large country is one where changes in its domestic market do alter the international price of the commodity
