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Chapter 9
The Instruments of Trade Policy
◼ Chapter Organization
Basic Tariff Analysis
Supply, Demand, and Trade in a Single Industry
Effects of a Tariff
Measuring the Amount of Protection
Costs and Benefits of a Tariff
Consumer and Producer Surplus
Measuring the Costs and Benefits
Box: Tariffs for the Long Haul
Other Instruments of Trade Policy
Export Subsidies: Theory
Case Study: Europe’s Common Agricultural Policy
Import Quotas: Theory
Case Study: An Import Quota in Practice: U.S. Sugar
Voluntary Export Restraints
Case Study: A Voluntary Export Restraint in Practice
Local Content Requirements
Box: Bridging the Gap
Other Trade Policy Instruments
The Effects of Trade Policy: A Summary
Summary
APPENDIX TO CHAPTER 9: Tariffs and Import Quotas in the Presence of Monopoly
The Model with Free Trade
The Model with a Tariff
The Model with an Import Quota
Comparing a Tariff and a Quota
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