{"id":806,"date":"2011-10-23T20:04:01","date_gmt":"2011-10-24T02:04:01","guid":{"rendered":"http:\/\/opengecko.com\/economics\/tariffs-quotas-and-subsidies\/"},"modified":"2011-10-26T12:38:29","modified_gmt":"2011-10-26T18:38:29","slug":"tariffs-quotas-and-subsidies","status":"publish","type":"post","link":"https:\/\/opengecko.com\/geckoview\/economics\/tariffs-quotas-and-subsidies\/","title":{"rendered":"Tariffs, Quotas and Subsidies"},"content":{"rendered":"

These three types of protectionism have pretty tricky diagrams (or at least they can get tricky if we want to really get into how they work in terms of the impact they have on different groups or stakeholders. Note – we should want to get tricky if we want to do well at IB Economics \"Smile\"). Here is a round up of resources to help you understand their effects.<\/font><\/p>\n

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Remember to first find a good working definition of each of these types of protectionism. Go on \u2026 Google them \"Smile\"<\/font><\/p>\n

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An overview<\/strong> of the three types is <\/font>here<\/font><\/a>, although the \u2018Next\u2019 function does not work.<\/font><\/p>\n

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There is an excellent <\/strong>summary of the relevant theory <\/font>here<\/font><\/a> by <\/font>Evan Schmidt<\/font><\/a> on his impressive blog (<\/font>http:\/\/schmidtomics.blogspot.com\/<\/font><\/a>)<\/font><\/p>\n

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Tariffs<\/font><\/u><\/strong><\/p>\n

Here\u2019s what a diagram might look like. It gives a good idea of the complexity of the diagram:<\/font><\/p>\n

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Image: <\/font>Some rights reserved<\/font><\/a> by <\/font>Gaynoir_<\/font><\/a><\/p>\n

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However, I recommend you refer to \u2018welfare loss\u2019 instead of \u2018societal loss\u2019 \u2013 whatever the term you use, these pink triangles represent inefficiency<\/em>. I also recommend you use letters for the different \u2018shapes\u2019 rather than colours, as that is far more efficient to complete in an exam and to refer to in your text which you use to explain the diagram. This diagram below uses letters, but note, you can (should) still get even more sophisticated than this \u2013 check your IB Economics text book if you have one. <\/font><\/p>\n

\"File:Tariff.JPG\"<\/font><\/p>\n

Image by <\/font>Ratibgreat<\/font><\/a> on <\/font>wikipedia<\/font><\/a><\/p>\n

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This first video by <\/font>lostmy1<\/font><\/strong><\/a> is a simple explanation compared to the following videos, but it is very accessible. It does not tackle efficiency \/ consumer and producer surplus, and these are concepts which you should then try to understand from the subsequent videos.<\/font><\/p>\n

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