Quotas vs tariff dilemma
Not what you're looking for?
Which measure causes the least damage economically and why?
Import quotas vs. Tariffs
Purchase this Solution
Solution Summary
This solution explains quotas vs.tariffs. The sources used are also included in the solution.
Solution Preview
Step 1
Import tariffs cause the least damage economically. Importers under a quota system are placed in a monopoly like situation and can gain high profits. When compared with tariffs, under quotas the same restriction produces higher price rise in the home country. There is a theory of tariff-quota equivalence which assumes perfect competition. The theory says that if perfect competition prevails in the market a tariff and import quota are equivalent in the sense that ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.