Econ111 Case Study

Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef

Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools.

This document aims to shed light on the issue of trade between Australia and Japan. In this comprehensive, yet brief report, areas covered include:

The Complete Idiot's Guide to Economics © 2003 by Tom Gorma Retrieved on February 27, 2012 http://www.infoplease.com/cig/economics/effect-imports-exports-gdp.html

When I, Marisa think about international trade one country comes to mind; Japan because Japan manufactures cars or electronics for example for America but it needs from us metals like iron and copper. Without us trading back and forth with Japan both sides would be hurting economy. In which I, Marisa will be going over more in detailed but first I, Marisa need to know the relation between international trade and world output, describe the broad pattern of international trade, if the nations of the world were to suddenly cut

13. When a tariff is imposed, there is always an additional loss. One loss occurs when

D. Assume country A and B decide to trade 100 units of popcorn for 100 units of peanuts, show on the graphs the gain each country receives from trade. Label these points on the two graphs “B.”

(e) Explain how a microeconomic view of international trade differs from a macroeconomic view of international trade.

As a source of income, 2. To protect domestic industries since Imported goods will price higher if tariffs exist. For the exporters, these tariffs will as a barrier on their export since the cost of exporting will increase. In other words, the tariffs were repealed under CEPA will bring advantages to Hong Kong. Under the economic theory and economic model, if a country (China) repealed their tariffs, the price of its imported good will decrease and imported quantity will increase, which bring (economic) advantages on the exporter (Hong Kong) since its export will

This paper will examine the Australian beef market, and whether it is an attractive market for South Korea to import from. An analysis of the current Australian and South Korean beef industries; the conditions required to produce beef most efficiently, following the Heckscher-Ohlin Model; tariffs that are involved with these trades, and the impact of the Korea-Australia Free Trade Agreement; environmental implications to Australia; as well as the cultural environment and geographic factor, will be discussed to determine whether South Korea is an attractive market for Australian beef.

In this I am going to assess the methods to increase trade between countries and the methods to restrict trade between countries. When asses the methods of encouraging and restricting trade I will talk about the purpose for the methods of promoting and restricting international trade, identify how and why they might be used and I will decide how useful each method is giving appropriate reasons for it. International trade is the exchange of goods and services between countries.

There are quite a few forms of tariffs that the government may apply based on the condition of the country’s economic welfare. The pros and cons of these forms of tariffs will be reviewed. Discussion on how these tariffs positively or negatively affects the economic stance of the country will be displayed. Tariffs such as the ad valorem, the taxing a percentage of the value of an item and the specific tariff or tax which is a set amount based on weight or sum of items. (McEachern, 2015)

_Now we can solve for the changes in surplus and total welfare. Once again, start intuitively. Since the price of sugar in the U.S. market has gone up it follows that U.S. consumer surplus will fall, U.S. producer surplus will rise, foreign producer will be better off, and there will be a domestic deadweight loss._

There is one thing in the field of economy that everyone agrees with, and that is the economist point of view. Economists hardly ever agree on issues related to a country’s economy. Then comes the point of contention, whether trade deficit is beneficial or harmful to an economy of a country? The answer to the questions is that the trade deficit can discuss both the benefits and detriments for a nation, but depends on situation of the country involved, the decisions made by the policy makers and the size & duration of the deficit in question. The study will analyze the pros and cons of trade deficit within the United States economy.

Governments intervene in international trade through use of tariffs that are levied on both imports and exports. The government may either impose fixed tariffs that are calculated per unit of the import commodity or the ad valorem tariff that is calculated as a fixed percentage of the monetary value of the imported commodity. The government imposes high import tariffs in order to control the rate of imports by making the imports more expensive in comparison to the domestically produced substitutes. The tariffs increase the prices of goods and services thus reducing the quantity demanded (Misra and Yadav 2009). The use of tariffs is detrimental to international trade since it lowers competition and results in high prices of commodities in the markets. The tariffs discourage imports and domestic producers benefit from the higher prices and reduction in competition. The EU uses variable