Enviar búsqueda
Cargar
Customs Unions and Trade Effects
•
0 recomendaciones
•
565 vistas
Título mejorado por IA
H
HashmatullahMayar
Seguir
Chapter about e-commerce
Leer menos
Leer más
Empresariales
Denunciar
Compartir
Denunciar
Compartir
1 de 22
Descargar ahora
Descargar para leer sin conexión
Recomendados
Meeting 4 - Stolper - Samuelson theorem (International Economics)
Meeting 4 - Stolper - Samuelson theorem (International Economics)
Albina Gaisina
Offer curve
Offer curve
Dr. Sunil Chandanshive
Meeting 3 - Rybczynski theorem (International Economics)
Meeting 3 - Rybczynski theorem (International Economics)
Albina Gaisina
kaldor-hiscks compensation criterio.ppt
kaldor-hiscks compensation criterio.ppt
SudhakarReddy630686
Reciprocal dumping model
Reciprocal dumping model
Ashish Bharadwaj
Classical trade theory
Classical trade theory
aarthi ramakrishnan
Offer Curves | Economics
Offer Curves | Economics
Transweb Global Inc
Absolute Advantage Theory
Absolute Advantage Theory
zeddem
Recomendados
Meeting 4 - Stolper - Samuelson theorem (International Economics)
Meeting 4 - Stolper - Samuelson theorem (International Economics)
Albina Gaisina
Offer curve
Offer curve
Dr. Sunil Chandanshive
Meeting 3 - Rybczynski theorem (International Economics)
Meeting 3 - Rybczynski theorem (International Economics)
Albina Gaisina
kaldor-hiscks compensation criterio.ppt
kaldor-hiscks compensation criterio.ppt
SudhakarReddy630686
Reciprocal dumping model
Reciprocal dumping model
Ashish Bharadwaj
Classical trade theory
Classical trade theory
aarthi ramakrishnan
Offer Curves | Economics
Offer Curves | Economics
Transweb Global Inc
Absolute Advantage Theory
Absolute Advantage Theory
zeddem
Hypothesis of secular deterioration of terms of trade
Hypothesis of secular deterioration of terms of trade
Ritika Katoch
Unit -2 : lecture-2 (absolute advantage theory)
Unit -2 : lecture-2 (absolute advantage theory)
Dr.B.B. Tiwari
Ie Rei (1)
Ie Rei (1)
ajithsrc
Friedmans theory of demand
Friedmans theory of demand
MuskanDhawan7
Economic integration
Economic integration
Lavanya Akella
Offer curves
Offer curves
takafiouwa
Lecture 7 - Endogenous growth theory
Lecture 7 - Endogenous growth theory
UNU.MERIT
Role of State in Economic Activities
Role of State in Economic Activities
jaheermuktharkp
International Economics
International Economics
JisjissyChandran
MACROECONOMICS-CH4
MACROECONOMICS-CH4
kkjjkevin03
Measuring poverty and inequality
Measuring poverty and inequality
Sakshi Singh
Standard Theory
Standard Theory
NusfaLafir
Economic Growth And International Trade
Economic Growth And International Trade
Hitesh Kukreja
History of Economic Thought
History of Economic Thought
John Cousins
Natural rate of unemploymenty
Natural rate of unemploymenty
Jijikumari
Trade creation & diversion notes
Trade creation & diversion notes
mattbentley34
Sylos labini’s model of limit pricing
Sylos labini’s model of limit pricing
Prabha Panth
Terms of trades
Terms of trades
Vinod Yadav
The Theory of Individual Labor Supply
The Theory of Individual Labor Supply
ecogeeeeeks
Public economics
Public economics
Babasab Patil
Determination of trade policy in the real world
Determination of trade policy in the real world
Nishant Pahad
An Overview of European Union(EU)
An Overview of European Union(EU)
Fahad Aziz
Más contenido relacionado
La actualidad más candente
Hypothesis of secular deterioration of terms of trade
Hypothesis of secular deterioration of terms of trade
Ritika Katoch
Unit -2 : lecture-2 (absolute advantage theory)
Unit -2 : lecture-2 (absolute advantage theory)
Dr.B.B. Tiwari
Ie Rei (1)
Ie Rei (1)
ajithsrc
Friedmans theory of demand
Friedmans theory of demand
MuskanDhawan7
Economic integration
Economic integration
Lavanya Akella
Offer curves
Offer curves
takafiouwa
Lecture 7 - Endogenous growth theory
Lecture 7 - Endogenous growth theory
UNU.MERIT
Role of State in Economic Activities
Role of State in Economic Activities
jaheermuktharkp
International Economics
International Economics
JisjissyChandran
MACROECONOMICS-CH4
MACROECONOMICS-CH4
kkjjkevin03
Measuring poverty and inequality
Measuring poverty and inequality
Sakshi Singh
Standard Theory
Standard Theory
NusfaLafir
Economic Growth And International Trade
Economic Growth And International Trade
Hitesh Kukreja
History of Economic Thought
History of Economic Thought
John Cousins
Natural rate of unemploymenty
Natural rate of unemploymenty
Jijikumari
Trade creation & diversion notes
Trade creation & diversion notes
mattbentley34
Sylos labini’s model of limit pricing
Sylos labini’s model of limit pricing
Prabha Panth
Terms of trades
Terms of trades
Vinod Yadav
The Theory of Individual Labor Supply
The Theory of Individual Labor Supply
ecogeeeeeks
Public economics
Public economics
Babasab Patil
La actualidad más candente
(20)
Hypothesis of secular deterioration of terms of trade
Hypothesis of secular deterioration of terms of trade
Unit -2 : lecture-2 (absolute advantage theory)
Unit -2 : lecture-2 (absolute advantage theory)
Ie Rei (1)
Ie Rei (1)
Friedmans theory of demand
Friedmans theory of demand
Economic integration
Economic integration
Offer curves
Offer curves
Lecture 7 - Endogenous growth theory
Lecture 7 - Endogenous growth theory
Role of State in Economic Activities
Role of State in Economic Activities
International Economics
International Economics
MACROECONOMICS-CH4
MACROECONOMICS-CH4
Measuring poverty and inequality
Measuring poverty and inequality
Standard Theory
Standard Theory
Economic Growth And International Trade
Economic Growth And International Trade
History of Economic Thought
History of Economic Thought
Natural rate of unemploymenty
Natural rate of unemploymenty
Trade creation & diversion notes
Trade creation & diversion notes
Sylos labini’s model of limit pricing
Sylos labini’s model of limit pricing
Terms of trades
Terms of trades
The Theory of Individual Labor Supply
The Theory of Individual Labor Supply
Public economics
Public economics
Similar a Customs Unions and Trade Effects
Determination of trade policy in the real world
Determination of trade policy in the real world
Nishant Pahad
An Overview of European Union(EU)
An Overview of European Union(EU)
Fahad Aziz
International cooperation among nations
International cooperation among nations
Georges Maalouf
Lecture no. 17 world trade organization and regional trade agreement
Lecture no. 17 world trade organization and regional trade agreement
Dildar Ali
14 b wto
14 b wto
Dildar Ali
Wto
Wto
Dildar Ali
Economic Integration(presentation)
Economic Integration(presentation)
kabul university
Group 5 trade blocs
Group 5 trade blocs
chinni kothai
Regional economic integration (2)
Regional economic integration (2)
AMIRAH AMMARAH
Dr Sam Ruturi 2018 Chapter 3 Customs and Regional Trade Regional Integration
Dr Sam Ruturi 2018 Chapter 3 Customs and Regional Trade Regional Integration
samruturi
Daniels08 im
Daniels08 im
Keerthi Ram
An Overview of Asian Development Bank (ADB)
An Overview of Asian Development Bank (ADB)
Fahad Aziz
Presentation integration
Presentation integration
Mohamed Ahmed
Preferential trade agreement
Preferential trade agreement
pavithra gopan
Project on trade blocs and trade barriers
Project on trade blocs and trade barriers
Kiran Joshi
0324585942_131627 (3).ppt
0324585942_131627 (3).ppt
MohitChavan10
Fta
Fta
Manish Patidar
©McGraw-Hill Education. All rights reserved. Authorized only.docx
©McGraw-Hill Education. All rights reserved. Authorized only.docx
VannaJoy20
Regional Economic Integration
Regional Economic Integration
Sumit Sinha
Unit 05 Economic Integration
Unit 05 Economic Integration
Vipul Kumar
Similar a Customs Unions and Trade Effects
(20)
Determination of trade policy in the real world
Determination of trade policy in the real world
An Overview of European Union(EU)
An Overview of European Union(EU)
International cooperation among nations
International cooperation among nations
Lecture no. 17 world trade organization and regional trade agreement
Lecture no. 17 world trade organization and regional trade agreement
14 b wto
14 b wto
Wto
Wto
Economic Integration(presentation)
Economic Integration(presentation)
Group 5 trade blocs
Group 5 trade blocs
Regional economic integration (2)
Regional economic integration (2)
Dr Sam Ruturi 2018 Chapter 3 Customs and Regional Trade Regional Integration
Dr Sam Ruturi 2018 Chapter 3 Customs and Regional Trade Regional Integration
Daniels08 im
Daniels08 im
An Overview of Asian Development Bank (ADB)
An Overview of Asian Development Bank (ADB)
Presentation integration
Presentation integration
Preferential trade agreement
Preferential trade agreement
Project on trade blocs and trade barriers
Project on trade blocs and trade barriers
0324585942_131627 (3).ppt
0324585942_131627 (3).ppt
Fta
Fta
©McGraw-Hill Education. All rights reserved. Authorized only.docx
©McGraw-Hill Education. All rights reserved. Authorized only.docx
Regional Economic Integration
Regional Economic Integration
Unit 05 Economic Integration
Unit 05 Economic Integration
Último
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
ictsugar
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
Rbc Rbcua
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
dollysharma2066
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
pollardmorgan
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
Call girls in Goa, +91 9319373153 Escort Service in North Goa
IoT Insurance Observatory: summary 2024
IoT Insurance Observatory: summary 2024
Matteo Carbone
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
ictsugar
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Stunning ➥8448380779▻ Call Girls In Hauz Khas Delhi NCR
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
Seta Wicaksana
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
ashishs7044
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
Mintel Group
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detail
Ariel592675
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
ashishs7044
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
callgirls2057
Annual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
KeppelCorporation
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
Kirill Klimov
India Consumer 2024 Redacted Sample Report
India Consumer 2024 Redacted Sample Report
Mintel Group
Future Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted Version
Mintel Group
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...
Seta Wicaksana
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
Jos Voskuil
Último
(20)
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
IoT Insurance Observatory: summary 2024
IoT Insurance Observatory: summary 2024
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detail
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Annual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
India Consumer 2024 Redacted Sample Report
India Consumer 2024 Redacted Sample Report
Future Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted Version
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
Customs Unions and Trade Effects
1.
International Economics Tenth Edition Economic
Integration: Customs Unions and Free Trade Areas Dominick Salvatore John Wiley & Sons, Inc. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc. CHAPTER T E N 10
2.
In this chapter: ◼
Introduction ◼ Trade-Creating Customs Unions ◼ Trade-Diverting Customs Unions ◼ The Theory of the Second Best and Other Static Welfare Effects of Customs Unions ◼ Dynamic Benefits from Customs Unions ◼ History of Attempts at Economic Integration Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
3.
Introduction ◼ Economic integration
refers to the commercial policy of discriminatively reducing or eliminating barriers only among the nations joining together. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
4.
Introduction Salvatore: International Economics,
10th Edition © 2010 John Wiley & Sons, Inc. ◼ Preferential trade arrangements ◼ Provide lower barriers to trade among participating nations than on trade with non- member nations. ◼ The loosest form of economic integration. ◼ Example: British Commonwealth Preference Scheme, established in 1932 between the United Kingdom and members of the British Empire.
5.
Introduction Salvatore: International Economics,
10th Edition © 2010 John Wiley & Sons, Inc. ◼ Free trade areas ◼ Removes all barriers to trade among members, but each nation retains its own barriers to trade with non-members. ◼ Examples: ◼ European Free Trade Association (EFTA), 1960, between United Kingdom, Austria, Denmark, Norway, Portugal, Sweden and Switzerland ◼ North American Free Trade Agreement (NAFTA), 1993, between the United States, Canada and Mexico
6.
Introduction Salvatore: International Economics,
10th Edition © 2010 John Wiley & Sons, Inc. ◼ Customs union ◼ Removes all barriers to trade among members and harmonizes trade policies toward the rest of the world. ◼ Examples: ◼ European Union (EU), or European Common Market, 1957, between West Germany, France, Italy, Belgium, the Netherlands, and Luxembourg. ◼ Zollverein, 1834, between large number of sovereign German states
7.
Introduction Salvatore: International Economics,
10th Edition © 2010 John Wiley & Sons, Inc. ◼ Common market ◼ Removes all barriers to trade among members, harmonizes trade policies toward the rest of the world, and allows free movement of labor and capital among member nations. ◼ Example: ◼ European Union (EU) achieved common market status in 1993.
8.
Introduction Salvatore: International Economics,
10th Edition © 2010 John Wiley & Sons, Inc. ◼ Economic union ◼ Removes all barriers to trade among members, harmonizes trade policies towards the rest of the world, allows free movement of labor and capital among member nations, and unifies monetary and fiscal policies of members. ◼ Most advanced type of economic integration. ◼ Examples: ◼ Benelux, formed after World War II between Belgium, the Netherlands and Luxembourg
9.
Introduction Salvatore: International Economics,
10th Edition © 2010 John Wiley & Sons, Inc. ◼ Duty free zones (free economic zones) ◼ Areas established to attract foreign investments by allowing raw materials and intermediate products duty free.
10.
Trade-Creating Customs Unions ◼
Trade creation occurs when domestic production in a member nation is replaced by lower-cost imports from another member nation. ◼ Leads to increased welfare for members as nations specialize in comparative advantages. ◼ Leads to increased welfare for non-members as increased real income spills over into increased imports from rest of the world. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
11.
FIGURE 10-1 A
Trade-Creating Customs Union. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
12.
Trade-Diverting Customs Unions ◼
Trade diversion occurs when lower-cost imports from non-members are replaced by higher cost imports from members. ◼ By itself, trade diversion lowers welfare as it shifts resources away from comparative advantages. ◼ Trade diverting customs union also results in trade creation. Change in welfare depends on relative magnitude of creation and diversion. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
13.
FIGURE 10-2 A
Trade-Diverting Customs Union. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
14.
The Theory of
the Second Best and Other Static Welfare Effects of Customs Unions ◼ It was once believed that any movement toward freer trade would increase welfare, so formation of a customs union would necessarily result in increased welfare for members and non- members. ◼ In 1950, Viner showed that formation of a customs union could increase or reduce welfare, depending on the circumstances under which it takes place. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
15.
The Theory of
the Second Best and Other Static Welfare Effects of Customs Unions ◼ Theory of the Second Best If all conditions required to maximize welfare cannot be satisfied, trying to satisfy as many conditions as possible does not necessarily or usually lead to the second-best position. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
16.
The Theory of
the Second Best and Other Static Welfare Effects of Customs Unions ◼ Conditions More Likely to Lead to Increased Welfare 1. Higher pre-union trade barriers of member nations. 2. Lower customs union’s trade barriers with non-members. 3. Greater number of nations forming customs union, and the larger their size. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
17.
The Theory of
the Second Best and Other Static Welfare Effects of Customs Unions ◼ Conditions More Likely to Lead to Increased Welfare 4. More competitive rather than complementary economies of member nations. 5. Closer geographical proximity of member nations. 6. Greater pre-union trade and economic relationship among potential member nations. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
18.
The Theory of
the Second Best and Other Static Welfare Effects of Customs Unions ◼ Other Static Effects of Customs Unions 1. Administration savings from elimination of customs officers, border patrols, and others. 2. Reduction in demand for imports from and supply of exports to rest of the world will likely lead to improvement in collective terms of trade of member nations. 3. By acting as a single unit, customs union will likely have more bargaining power than members separately. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
19.
Dynamic Benefits from
Customs Unions Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc. ◼ Dynamic Benefits of Customs Unions 1. Increased competition, leading to greater efficiencies and technological improvements. 2. Economies of scale from the enlarged market. 3. Stimulus of investment to take advantage of enlarged market, and to meet increased competition. 4. Better utilization of community resources as labor and capital move freely (assumes common market).
20.
History of Attempts
at Economic Integration ◼ The European Union (EU) ◼ 1958 – established common external tariff ◼ 1968 – Achieved free trade in industrial goods within EU, and common price for agricultural goods ◼ 1970 – Reduced restrictions on movement of labor and capital ◼ 1993 – Removed all remaining restrictions on flow of goods, services and resources, becoming largest trade bloc in the world Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
21.
History of Attempts
at Economic Integration ◼ The European Free Trade Association (EFTA) ◼ 1960 – formed by “outer seven” nations: United Kingdom, Austria, Denmark, Norway, Portugal, Sweden and Switzerland ◼ 1967 – Achieved free trade in industrial goods ◼ 1991 – Membership evolved to include Austria, Finland, Iceland, Liechtenstein, Norway, Sweden, and Switzerland ◼ 1994 – Joined EU to form European Economic Area (EEA) Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
22.
History of Attempts
at Economic Integration ◼ The North American Free Trade Agreement (NAFTA) ◼ 1994 – formed by United States, Canada and Mexico, to eventually lead to free trade in goods and services over entire North American area. ◼ Also phased out many other barriers to trade and reduced barriers to cross-border investments among the three member nations. Salvatore: International Economics, 10th Edition © 2010 John Wiley & Sons, Inc.
Descargar ahora