Partial equilibrium analysis of tariff

Introduction All nations impose some restrictions in the form of tariff (i.e., import tariff and export tariff) and non-tariff barriers (i.e., import quota, dumping, international cartels and export subsidies) on the free flow of international trade.  Since these restrictions and regulations deal with the nation’s trade or commerce, they are generally known as trade or… Continue reading Partial equilibrium analysis of tariff

General equilibrium analysis of tariff

Introduction General equilibrium analysis of a tariff is most appropriate when the effect of tariff is examined on the nation as a whole. General equilibrium analysis is more complex in nature. General equilibrium analysis makes use of production possibility curves/ production frontiers/ transformation curve, community indifference curves, or offer curves. General equilibrium analysis of a… Continue reading General equilibrium analysis of tariff

Technological Gap And Product Cycle Models

Introduction Apart from differences in the relative availability of labor, capital, and natural resources (stressed by the Heckscher–Ohlin theory) and the existence of economies of scale and product differentiation, dynamic changes in technology among nations can be a separate determinant of international trade.  These are examined by the technological gap and product cycle models. Since… Continue reading Technological Gap And Product Cycle Models

Imperfect Competition and International Trade

Introduction Imperfect competition is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods as opposed to the perfect competitive market scenario. As the name suggests, competitive markets that are imperfect in nature. Imperfect competition is the real world competition. Today some of the industries and sellers follow it… Continue reading Imperfect Competition and International Trade

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