The tariffs have varying effects upon the real rewards of the factors of production in the short, medium and long term. 1. Short-Term Effect: In order to investigate the effect of tariff upon the real reward of factors in the short period, we proceed with certain assumptions: (i) There are the conditions of free trade. (ii) The country is small. [...]
In this article we will discuss about the meaning and types of tariffs imposed on imports and exports. Meaning of Tariffs: A tariff is a duty or tax imposed by the government of a country upon the traded commodity as it crosses the national boundaries. Tariff can be levied both upon exports and imports. The tariff or duties imposed upon [...]
In this article we will discuss about:- 1. Tariff and Income Distribution—Stopler-Samuelson Theorem Again 2. The Metzler Paradox 3. The Lerner Symmetry Theorem. Tariff and Income Distribution—Stopler-Samuelson Theorem Again: The Stopler-Samuelson Theorem dealt with the change in income distribution on account of international trade. These writers stated that free or unrestricted international trade would benefit the relatively abundant factor and [...]