The Advantages And Disadvantages Of CEPA Brought To The Mainland With Zero Tariffs In Hong Kong

This kind of tax is called a tariff and is enacted to protect domestic producers of the same items that can be imported at much lower costs. Answer the following: (10 points)

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

In modern economic policy of nations and states, the tariffs a tool to tax goods and services being imported. The principal desired outcome for this tool is to create security for the domestic industry from the imported product, which may be cheaper for consumers to purchase. (McEachern, 2015)

control over trade between states and countries. While the purpose of this tariff is completely

Hong Kong: Hong Kong was the world’s 7th largest trading entity in good in 2013, Tariff free treatment to all Hong-Kong origin goods. Hong Kong has a strategic geographical location, well-developed infrastructure and international communication network.

One advantage of trade for Australia is the access to a wider variety of goods for Australian consumers. With the nation importing many different goods from Chinese trading markets, Australian consumers can purchase a wider variety of goods, services and foods that are not only of a better quality and cheaper due to increased competition, but wouldn’t otherwise have been available. Goods such as Chinese electronics, food items and furniture.

But there are also disadvantages. While Australia’s wool industry and other sections of Australia’s economy would profit from the FTA, there are also losers. The car, clothing and vegetable industry could be destroyed by the Chinese exports, because the Chinese producers can offer their products much cheaper. “But they don’t face the same quality assurance condition and have access to cheap labour.”(the Age,April 20, 2005) China could swamp Australia with below-cost imports. The Australian producers aren’t competitive, so they will loose market shares. Before the negotiations begin, Australia has to recognize China as a market economy. “But the prices for Chinese products appear to be set by authorities instead of markets”(the Age, December 6,2004) and the products are often dumped, so a recognition would undermine Australia’s anti-dumping powers. Chinas rules of law in commerce are still underdeveloped and the economy isn’t fully transparent. If Australia recognises china as a market economy the minister isn’t required to resort surrogacy, where unreliable or no pricing information is available. So there would be Legislative or administrative changes needed to undertake action against predatory priced products dumped on the Australian market. Besides China’s benefits of this deal will be grater than the Australian ones, because China is

According to the Chiquita case, Latin American and non-ACP sources tend to lose the most from the tariffs and quotas, which includes companies like Chiquita. That being said, ACP sources such as Windward Islands tend to benefit from the tariffs and quotas placed.

because of the NAFTA it has eliminated most of the duties, tariffs, and quotas. Under the circumstance

Meanwhile, according to Morelock, J (2017) Tariff has a clear number of results that may be an advantage to some parties, while being a significant disadvantage to others. Tariff have an impact on promoting American products, when the U.S government chooses to place a tariff on an import good, the producer can choose to reduce their price to compensate for the tariff or to pass on the cost to the consumer. (2) increase the government revenue, the U.S. government collect revenue in order to economically support its function. (3) discourages trade, when American consumers choose to buy a lower-priced American product, foreign producers become disadvantaged, ultimately leading to less trade with the U.S. Foreign producers are forced to reduce their prices to compete with similar American products. (4) reduces consumer choice, individual consumer choice remains as one of the greatest consumer benefits of international trade. When tariffs are placed on imported goods, the increase prices and reduced trade prohibit individuals from all choices that could be available in the market.

Although tariffs usually cause domestic prices to increase they can have a positive effect on our economy and specifically our domestic producers of steel and their employees. The US trade policy has historically been protectionist in nature, and congress, the principle body of power for import policy, heavily favored domestic firms over their foreign competitors (Irwin 146). As a result, domestic steel producers have had tariffs and quotas in place for many years. An effective tariff raises revenue for our US government and can help to subsidize domestic production at the expense of foreign producers. This is good because the American government receives money from foreign exporters that it would not have otherwise had access to. This money can then be used in domestic government policies and could

There are three reasons in particular why free trade agreements aid in society. Free Trade agreements increase Australia’s productivity, add attractiveness to Australia’s investment destination, and give Australia more trading opportunities

Tariffs are defined as a tax on a product exported from one country and placed on the importing country. Placing tariffs on China will help balance out the United States’ trade deficit with them. China’s increase in exports and decrease in imports, coupled with the devaluing of the yuan puts them in the perfect position for imposing tariffs. China wants to sell much more than they import rather than keeping a stabilized economy (The Great Fall of China 11). If tariffs are put on what little imports they have from the United States, then that will start to bring the trade deficit between the two countries towards zero. Switching from reciprocity to having a substantial amount of

The key important role of government intervene in international trade is interest to protect the domestic producers in their country. Political arguments concerned with protecting the interests of one group, which are producers often at the expense of another within a nation, which are consumers. First, government should protect jobs and

In this scenario, the U.S. government has imposed these tariffs in order to make Chinese solar products relatively costly. This increased prices on these products will in turn reduce the demand for Chinese made solar products in the United States. Also, with the tariffs and reduced supply, this will increase the equilibrium price of solar products in the United States. These increased prices will allow for more U.S. producers to compete in the U.S. solar products market. With this type of activity, the government is hopeful that this will help U.S. domestic producers become more competitive. And, hopefully this will create more jobs for U.S. workers.