Fill in the blank: The Comprehensive Economic Partnership Agreement (CEPA) between India and the ___ was concluded on February 18, 2022.

UAE

Explain the difference between specific tariffs and ad valorem tariffs.

Specific vs. Ad Valorem Tariffs

• Specific tariffs are fixed charges.

• Ad valorem tariffs vary with value.

• Both affect import pricing strategies.

True or False: Non-tariff measures (NTMs) are always discriminatory against foreign producers.

False. NTMs are a broader category that includes both legitimate measures for consumer protection and potentially discriminatory practices.

What are countervailing duties and why are they implemented?

Countervailing duties offset foreign subsidies.

• Impose tariffs on subsidized goods.

• Level the playing field for local firms.

• Promote fair trade practices globally.

What is the purpose of anti-dumping duties?

Anti-dumping duties aim to protect domestic industries from foreign products sold below fair market value, which can harm local producers.

Fill in the blank: The tariff imposed on a good that is so high it effectively prevents imports is known as a ___ tariff.

Prohibitive

Describe how tariffs can impact consumer surplus in the importing country.

Tariffs reduce consumer surplus significantly.

• Increased prices for imports.

• Consumers buy less due to cost.

• Overall welfare decreases in economy.

True or False: Tariff rate quotas (TRQs) impose the same tariff rate on all imports regardless of quantity.

False. TRQs impose lower tariffs on imports within a specified quota and higher tariffs on imports exceeding that quota.

What are the potential effects of tariffs on domestic industries?

Tariffs protect domestic industries effectively.

• Reduces foreign competition significantly.

• Allows local firms to raise prices.

• Can lead to job creation locally.

Fill in the blank: Tariffs are classified into price-related measures like ___ and non-price measures known as ___ measures.

Tariffs; non-tariff