High Import Tariffs Research Articles

Komoditas Dalam Skema Request - Offer Indonesia Dengan Taiwan: Analisis Inferensia Berdasarkan Database Tahun 2019

Bilateral cooperation between Indonesia and Taiwan has better growth every year, while import tariffs imposed by Taiwan on Indonesia export commodities are still relatively high. This study aims to identify and analyze commodities included in the request-offer scheme between Indonesia and Taiwan based on 2019 database. Identification and analysis of annual growth value, equivalent ad valorem tariff, average export value, export share, average Revealed Comparative Advantage (RCA) index, and RCA trend are carried out through inferential analysis. Inferential analysis is needed to determine the commodities contained in the request-offer scheme of Indonesia and Taiwan that have good performance but are still subject to high import tariffs by their partner countries. Indonesia's export commodities to Taiwan which have a good performance while the import tariffs are still high are given by Taiwan to Indonesia as Indonesia's request scheme to Taiwan, namely: processed food (ofd); tobacco (b_t); vegetables, fruits, and nuts (v_f); and fishery commodities (fsh). Taiwan export commodities to Indonesia that have good performance but are still subject to high import tariffs by Indonesia are Indonesia's offer scheme to Taiwan, namely: manufacturing (lum); cosmetics (crp); miscellaneous edible preparations (ofd); and textiles (tex). Indonesia and Taiwan can increase bilateral cooperation in the field of international trade through barriers lowering schemes and transferring science and technology from each country.

EVALUATING THE IMPACT OF INNOVATION ON BILATERAL TRADE IN NIGERIA

Purpose: the study examined the impact of innovation categorised into copyright, patents, and innovation index, on bilateral trade flows and trade costs on manufactured bilateral trade in Nigeria. Theoretical Framework: challenges facing the international trade such as high import and export tariff, taxes, deflation and inflation, unemployment and in one way or the other affect the economic growth of Nigeria. There is need to investigate the impact of innovation on bilateral trade flows and trade costs on manufactured bilateral trade in Nigeria. Methodology: the study adopted an ex post facto research design. Data were subjected to various diagnostic test ranging from descriptive statistics, unit root test, using Micro-soft excel and E-View 10 and econometric modelling. The researcher employed an econometric method of analysis which makes validation to become necessary. Because it outlines the summary statistics which will display the statistical summary and properties of the variable included in the model. Findings: Some research found a positive but non-significant relationship between technological innovation and economic growth and others showed just a positive relationship. Digital advancement was also shown to exhibit a significant effect on economic growth in Nigeria. Research, Practical & Social Implication: The most consensus recommendation, was an increase in budgetary allocation for the technological development.

Endovascular Thrombectomy for Acute Ischemic Stroke in Indonesia: Challenging and Strategic Planning.

High rates of morbidity and mortality indicate that stroke is a major health concern. Unfortunately, the management of ischemic stroke is hindered by several obstacles, particularly in developing countries such as Indonesia, where the burden of morbidity and mortality remains high. In this literature review, we intend to conduct a thorough investigation and analysis of the obstacles to stroke thrombectomy in developing countries, with a focus on Indonesia. Even though numerous studies and recent advances in thrombectomy techniques have been developed, many centers around the world continue to struggle to implement them. The majority of these institutions are located in developing nations like Indonesia. It faces numerous obstacles, including a lack of public awareness, infrastructure, human resources, and financial difficulties. The absence of early education and large-scale campaigns contributes to the dearth of public awareness. Inadequate imaging facilities, prehospital and referral systems, as well as disparities in healthcare expenditure and accessibility, contribute to the absence of infrastructure. Inadequate numbers of neurointerventionists, neurologists, and neurosurgeons, as well as a disparate distribution of these professionals, contribute to human resource issues. Inadequate national insurance coverage, high import tariffs on medical devices, and the high cost of healthcare have a negative impact on the financial situation. We provide related strategies regarding the current situation in Indonesia based on the recent evidence and comparison with developed countries. Academic institutions, medical associations, and government agencies must collaborate to overcome these challenges.

Updating the analysis of rice import liberalization in Japan: a dynamic-stochastic CGE modelling approach

ABSTRACT Food self-sufficiency is a central pillar of agricultural policy in Japan, and a high import tariff strictly protects the domestic rice market. Most existing studies investigate the deterministic impacts of the rice trade liberalization policy in the country; one, in particular, developed a static-stochastic computable general equilibrium (CGE) model to estimate how risky the policy would be in securing the food supply, which fails to account for the long-term effects of a free trade policy. We analyse the impacts of rice trade liberalization in Japan, constructing the first global-scale dynamic-stochastic CGE model. We update the policy analysis of the previous study by extending the static-stochastic model to a dynamic-stochastic framework that allows us to analyse the long-term impacts of the policy in a probabilistic manner. The primary findings are that household welfare converges at a higher level in the long term than in the short term. Second, the shocks to household welfare from abroad persistently become more significant over time. Finally, we have determined that the optimal level for government strategic rice reserves is 300 thousand tons. Therefore, it is apparent that the current stock level of 1000 thousand tons is not cost-effective.

Tesla: route to India, route in India

Research methodology The case has been developed by using secondary sources of information. Case overview/synopsis Tesla’s much-awaited foray into the burgeoning Indian electric vehicle (EV) marketplace had hit the “high import tariff” roadblock. Discussions ensued and finally, Elon Musk, the CEO of Tesla and the Indian Government found common ground. The moot point of Tesla’s entry mode was resolved. Musk announced Tesla’s plan to set up an EV supply chain and manufacturing facility in the host country. This case discusses factors affecting location decision, market entry modes and international corporate-level strategies. Tata Motors sold affordable cars and was miles ahead in the EV race in India. Musk had to align Tesla’s India strategy with the company’s global strategy to woo the price-sensitive Indian consumers. What were the options available to him? This case examines different business-level strategic options that could help Tesla drive in the fast lane in India. Complexity academic level The case can be used in international strategy course at graduate level. It can also be used in a session on international marketing in marketing management course.

Causes of The United States Launching A Trade War Against The People’s Republic of China (PRC) in 2018

The trade war between the United States and the People's Republic of China (PRC) has attracted world attention because it was predicted to affect the global economy. The trade war started with the United States implementing high import tariffs on PRC products, to which the PRC then responded with similar actions. The application of this tariff is a response to the trade deficit that occurred to the United States in its trade with China. The United States' trade deficit with China has existed since 1989. Meanwhile, in 2017, the United States and China agreed to implement a 100-day plan aimed at opening up and expanding trade between the two countries. Thus, the question in this research is "Why did the United States launch a trade war against the People's Republic of China (PRC) in 2018?". The theory used in this research is trade expectations theory. The data sources are official United States government documents, World Bank reports and various journals related to this theme. This paper aims to analyze the causes of the United States launching a trade war against the PRC in 2018. The result of this research is The United States launched a trade war against the PRC was because of the United States' negative expectations of the PRC which made the United States choose war against the PRC even though there was high dependence between the two countries. Negative expectations of the United States were assessed by trade deficit aspect, foreign investment aspect, employment and unemployment rate, and public opinion.

How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?

Carbon lock-in poses a significant challenge in developing countries such as India and China. To mitigate this issue, these countries can leverage mandatory carbon emission reduction mandates imposed by multinational firms (MNFs) on their domestic manufacturers, thereby spurring the latter's investment in carbon emission reduction. However, facing eco-conscious customers, MNFs might opt to source from carbon-neutral overseas manufacturers even at high import tariff costs. We therefore explore how a local government can adjust the tariff rate and/or the domestic manufacturer's carbon emission reduction efficiency to induce an MNF local sourcing. Our findings indicate that even if the MNF has sourced locally, the overall emissions can be effectively reduced only when the domestic manufacturer's efficiency in reducing carbon emissions surpasses a unique threshold. Regarding social welfare, our results demonstrate a hump-shaped relationship with import tariff rates when an overseas sourcing strategy is adopted. We identify a triple-win situation where the MNF's local sourcing harmonizes the MNF's profit-maximization goal, the local government's environment protection goal, and the social welfare maximization goal. This paper sheds light on the value of MNFs’ sustainability requirements and local sourcing strategy in curbing emissions and tackling the pervasive issue of carbon lock-in that plagues many developing countries.

A Practical Narrative of Tariff Protection in Pakistan

This research work quantifies the changes in effective rates of protection in Pakistan during the last decade of 2011–20. Based on its results, it supports a more flexible trade policy in Pakistan. Further, it identifies the sectors with strong and weak long-run productive capacities and highlights the role of trade barriers in these industries. A key concern is the decreasing productive capacity of textile and leather sectors where the textile industry has the largest share in the total exports from Pakistan. Hence, there is a dire need to invest more in research and development activities in such industries. Finally, the country needs to increase its range of export items and export destinations with more favourable terms of trade, which can be achieved by reducing its historically high import tariff rates. Effective Rate of Protection, Input-Output Table, Industry, Trade, Pakistan JEL Classification: C67, D57, F6, L5, R15

A global analysis of trade policies in antimicrobial medicines

Antimicrobial medicines are difficult to access for the poor people in many parts of the world, mainly because of their costs and lack of local availability. While it is not necessary that these medicines may be produced across the world, it is possible to import them from countries that have enormous production capacities. For this to happen, the countries that lack these medicines should have trade policies in place that facilitate their cheap imports. However, trade policies typically do not take this aspect into account when they are formulated. The policy determinants of high import tariffs are industrial policy and protectionism-related concerns on one hand and revenue considerations on the other hand. In this paper, we take a close look at the global trade and tariffs in various countries in several antimicrobial medicines and medicaments, to come up with inferences on how countries that import a lot of them may do better by reducing tariffs. Especially, the article deals with anibiotics trade. The export and import drug potentials are investigated. The largest export countries proved to be China, the United Kingdom, India, Canada, Germany, Switzerland and Italy. The import leaders are India, Chile, Austria, the USA, Switzerland. A major policy implication emerging from this study is that countries ought to take a deeper look at the trends in trade and tariffs on antimicrobial drugs on a priority basis, since this has to do with lives of real people. Unnecessary blanket tariffs meant for tariff revenue should be avoided, as we find this in many countries that have hardly any production capacity for these drugs (such as the Bahamas, Djibouti, Bermuda, the Comoros, etc.). The bigger players in the sector, both in terms of imports and exports, have relatively lower tariffs, but there is still a lot of scope of reducing these tariffs to ensure that these drugs are available at affordable prices to people at large. Industrial policy motivations to levy tariffs in order to protect the domestic industry against import competition may also need to be done in a measured manner, because this is about health and safety of people and not just another industry. Having said that, for health security purposes, it makes sense to develop domestic production capacity and supply chains. That can be done based on international partnerships, R&D, domestic tax and other policy incentives like the Production Linked Incentives (PLI) scheme in India (rather than tariffs).

The effects of freer trade on global agriculture

AbstractIntransigency among developed and developing countries to reduce trade‐distortive policies—domestic subsidies, export subsidies, and import tariffs—created deadlock in the Doha Round negotiations. Because of this impasse, many countries continue to heavily subsidize their agricultural production and high import tariffs continue to persist in the world market. This study empirically quantifies the benefits of a global free trade agreement utilizing a large‐scale computable general equilibrium model. The results show that a global trade agreement increases welfare by $60 billion as commodity production and consumption adjust to reflect their comparative advantage patterns, accentuating the benefits of completing a global free trade agreement.

Impacts of Trade Friction and Climate Policy on Global Energy Trade Network

The trade impacts of the COVID-19 pandemic and the Russian invasion of Ukraine have raised questions about the role of trade and climate policies in energy security and global emissions. This study updates a widely used integrated assessment model (IAM), MESSAGEix-GLOBIOM, to represent complex trade networks to explicitly draw energy flows from their origins to their destination. It then examines the effects of (1) energy trade tariff policies, such as import tariffs, as a proxy to represent an unfriendly trade environment and (2) a global carbon emissions tax on the global energy trade network. Results indicate that trade tariff policies have marginal effects on the trade network, i.e., the size of trade and importing-exporting regions do not change significantly. While high import tariffs significantly reduce emissions due to reduced fossil fuel imports in the importing region, this effect does not translate to significant emission reductions globally, as trade policies only impact downstream of the energy supply chain. However, a carbon emission tax dramatically alters the trade network, by (1) reducing its size by up to 50% and (2) forming trade linkages that allow for a more complex and diverse network of suppliers. This diversity under the emissions tax scenario improves the energy security of major energy-importing regions. Moreover, under an emission tax scenario, a friendly trade environment reduces the energy system costs globally. However, trade friction, such as sanctions or high import tariffs, will increase the energy supply cost significantly, especially for energy-importing regions such as Europe, East and South Asia.

Second-Hand-Clothing Imports in Least-Developed-Countries: The Collapse of Local Clothing Manufacturing and Remedial Measures

Considering the overwhelming global trend of second-hand clothing trade, domestic clothing manufacturing industries in many least developed countries (LDCs) have collapsed. Governments of many LDCs, therefore, have imposed tariff policies on the imports of second-hand clothing. Motivated by the real-world practices, we develop a two-stage Stackelberg supply chain gaming model to study the competition between the locally manufactured new clothing product and the imported second-hand clothing product. We first explore whether import tariff protection can help boost domestic clothing manufacturing industries in LDCs in the light of risk considerations and what the optimal import tariff structure is. We find that in the uncertain LDC market, imposing a high import tariff or a high value-added tax (VAT) on the imported second-hand product may not help local manufacturing. Instead, implementing a carrot-and-sticks (CaS) scheme, which includes an import tariff, a VAT, and an extra incentive, can help. The LDC governments are suggested to adjust the CaS scheme's structure based on factors like risk attitudes of supply chain members, the unit product supply costs, social health risk, and consumer acceptance level of the second-hand product. Finally, we extend our analyses to study the social welfare and the extended importer responsibility (EIR) legislation. We find that if the sterilization cost of the second-hand product is sufficiently low, imposing the EIR legislation in the uncertain LDC market is not beneficial to the domestic clothing manufacturing industry. Specific conditions under which imposing a higher import tariff is beneficial or harmful to the LDC society are identified.

Состояние развития трансграничной электронной коммерции в Китае в рамках инициативы "Один пояс и один путь

With the continuous improvement of people's living standards and the strengthening of purchasing power, there are higher requirements for brand and quality. However, due to geographical restrictions or the restriction of city scale and other reasons, some commodities have not set up counters or exclusive stores locally, and due to the high import tariff, the big price difference for some products between domestic counter and that of foreign countries is very obvious, so various new service forms such as overseas shopping and daigou emerge as the times require. They can eliminate geographical restrictions and are more convenient, faster, affordable, and loved by consumers. More and more individuals and platforms have regarded it as a business opportunity and joined in the trade which make the scale of the trading market grow quickly. Many operators, especially overseas online retailers, have seen the strong consumption ability of China's consumers, opened up payment modes such as Alipay and WeChat, and also used direct mail delivery mode to distribute them. The Chinese consumer market is constantly upgrading, with individualization, diversification and quality becoming the new pursuit of consumers. Due to the increase in income, the popularization of the Internet and the continuous upgrading of consumer consumption attitudes, the trend of consumption upgrading has gradually spread to small cities. Cross-border e-commerce platforms continue to explore new trade models to promote the development of cross-border e-commerce trade. The Ministry of Commerce will further promote the economic and trade cooperation and the strategy of "One Belt, One Road", develop "Silk Road online retail", and create a new platform for international cooperation in accordance with the requirement, proposed by President Xi Jinping, to build the road of peace, prosperity, opening up and civilization. Under the circumstance of "One Belt, One Road", China's cross-border e-commerce has flourished. In 2019, China's cross-border e-commerce market has presented more characteristics.

Main Determinants of Opening Antidumping Cases: A Poisson Analysis Using Panel Data

ABSTRACT This article uses a panel-data approach to analyze the main determinants of opening antidumping (AD) processes. Our results revealed that reductions in imports, foreign income growth, worsening of domestic income, currency devaluation, and current account surplus could reduce AD cases. Upper-income countries, which adopt high import tariffs and are frequent targets of AD, as well as large exporters of metal, chemicals, and plastic products, are initiating more AD. Since AD should prevent disloyal trade practices and there are specific rules for its use, such influence should not occur. Thus, AD legislation should be revised to discourage the misuse/overuse of AD.

Emerging Countries and the Effects of the Trade War between US and China

The aim of the paper is to examine the effects of the US–China trade war on both countries and some emerging economies. Two scenarios are examined, one where only US protectionist measures are considered, and another in which Chinese retaliation is taken into account, using the GTAP (Global Trade Analysis Project) Computable General Equilibrium model. The results showed that, on one hand, the trade war would lead to a reduction in US trade deficit and an increase in domestic production of those sectors affected by higher import tariffs and Chinese producers and consumers would bear the lion’s share of the burden of the trade war. But, on the other hand, both countries and the world as a whole would lose in terms of welfare, due to the significant reduction in allocative efficiency, especially in the US, and the loss of terms of trade in the Chinese case. With the increase in protectionism between the two largest global economies, some important emerging countries, not directly involved in the trade war, would benefit by the shift in demand to sectors where they have comparative advantages.

Understanding the recent Sino-U.S. trade conflict

ABSTRACTTo understand Sino-U.S. trade relations, this article interprets the trade imbalance between China and the United States from the Trump administration’s perspective. The Trump administration claims that the Chinese government’s subsidies and high import tariffs cause the Sino-U.S. trade deficit, resulting in job losses in the U.S. The Trump administration therefore argues that imposing high tariffs on Chinese exports can resolve the deficit. The article finds that U.S. statistical accounting overestimates the deficit. Reducing China’s imports cannot increase U.S. employment, and China provides the United States with low-price and high-quality products. Chinese investors tend to invest the surplus by purchasing U.S. Treasury bonds. In addition, the United States limits Chinese investments due to ‘national security’ concerns. China’s upgrading to the high end of the global value chain is a consequence of economic development. Therefore, the two countries should rebalance Sino-U.S. trade by seeking economic and trade cooperation via trade negotiations.

The Day After Tomorrow: Evaluating the Burden of Trump's Trade War

During his U.S. presidential campaign Donald Trump threatened China with the imposition of high import tariffs on its exports to the United States. To evaluate the repercussions of such an action, this paper uses Eaton and Kortum's 2002 multi-sector, multi-country general equilibrium model with intersectional linkages to forecast how exports, imports, output, and real wages would change if Trump's threat of 45 percent tariffs is carried out. To view plausible scenarios, we evaluate the case of a unilateral action on the part of the United States, as well as a scenario where China retaliates by imposing an equally high 45 percent tariff on its imports from the United States. In addition, because the high U.S. trade deficit with China is a factor that underpins calls for tariff action, we explore simulations where the trade balance is restored to balance as well as a scenario in which the trade balance is unchanged. In all of the scenarios, the calibration exercise suggests that a trade war triggered by high U.S. import tariffs will lead to a collapse in U.S.–China bilateral trade. In all of the scenarios, the United States will experience large social welfare losses, whereas China may lose or gain slightly depending on the effect of trade war on the U.S.–China trade balance. Globally, some small open economies may experience small benefits, while other countries may suffer collateral damage.

Brexit, Trade Agreements and CAP Reform

SummaryAlthough a number of reforms have significantly changed the Common Agricultural Policy (CAP) over the past two decades, a defining characteristic of the policy is its prohibitively high import tariffs on a number of key commodities as tariff cuts have not formed part of CAP reform. These high tariffs, whilst protecting EU producers, complicate the EU's attempts to negotiate Free Trade Area (FTA) agreements around the world, and will likewise be problematic for agri‐food trade with a post‐Brexit UK, particularly over the politically sensitive border between the EU‐27 and the UK on the island of Ireland. An open border could be more easily secured if the UK's tariff barriers on CAP products matched those of the EU‐27. This, however, implies either that the UK will have to abandon its plans to pursue ‘free‐trade’ policies with other countries around the world, or that the EU‐27 needs to complete its reform of the CAP by unilaterally reducing its tariff barriers. It seems highly unlikely that the challenges posed by Brexit would prompt the EU to unilaterally reduce its excessively high CAP tariffs.

Tao & Willis, Inc.: Inventory Accounting Methods

An executive with Tao & Willis, Inc. (TW), is faced with choosing an inventory accounting method for a new Brazilian subsidiary of a U.S.-based company. Students are asked to assess the different profit implications of LIFO and FIFO for five years of data. During the time period, exchange rates between Brazil and the United States had been fluctuating significantly. This case focuses on the basics of inventory accounting in an interesting international context, and can be used in graduate or undergraduate business courses, specifically those teaching the fundamentals of financial accounting. Excerpt UVA-C-2384 Rev. Sept. 15, 2016 Tao & Willis, Inc.: Inventory Accounting Methods Tao & Willis, Inc. (TW), was a video gaming and entertainment company headquartered in Phoenix, Arizona. The company specialized in the manufacture and distribution of computer games and stand-alone gaming consoles. It sold its products all over the world, and experienced particularly strong demand in South America. High import tariffs in those countries, however, were cutting into profits. Under the leadership of John Gary Sommers, TW had become proactive. For years, Sommers had lobbied senior management to move manufacturing operations to Brazil, and his vision was finally a reality. The new subsidiary, TW-Brazil, would handle all manufacturing operations in the Western hemisphere south of the equator. TW had never before operated an entity in a foreign country, so this represented a true inflection point for the company. Sommers was put in charge and given full decision-making responsibility for all financial and operational aspects of TW-Brazil. One of the early tasks Sommers assigned his CFO was to evaluate TW-Brazil's financial options related to inventory accounting. He specifically wanted comparisons of expected financial results for two different inventory cost flow methods: last in, first out (LIFO), and first in, first out (FIFO). Sommers knew that the inventory cost flow method that he ultimately chose would influence profits. TW was a publicly traded company and was thus always focused on maintaining margins and meeting EPS growth expectations. TW-Brazil was expected to help in this regard in 2016, but the longer-term benefits were not as obvious. Sommers fully understood that there was a company-wide expectation that 30% gross margins be maintained. . . .

Evaluation of the European Union-United States oil and petroleum-based fuels trade potential in the context of the negotiated TTIP agreement

The article evaluates the European Union-United States oil and petroleum-based fuels trade potential. The planned trade structure and balance according to IEA (International Energy Agency) and IHS (IHS CERA www.ihs.com)) scenarios, the projected volume of imports and exports, and differences in price levels and costs are presented. The projected potential of the trade volume, taking into account the possible impact of the Transatlantic Trade and Investment Partnership (TTIP), is also presented. The analysis has shown that the elimination of trade barriers between the European Union and the United States would be more beneficial to US refineries. Due to the higher import tariffs to the EU, the potential benefits of US exporters are higher than those of the EU exporters to the US. This confirms the fears of European negotiators that some aspects of the agreement will have a negative impact on European businesses. However, in the case of petroleum products the TTIP agreement will have a negligible impact on increasing the export volume.