Economic Theory in General, and Trade Theory in Particular Are

question 16

Essay

Economic theory in general, and trade theory in particular are replete with equivalencies. For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.

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Definitions:

Productive Work

Work or activities that directly contribute to producing goods or services, as opposed to administrative or support functions.

Home Theatre

describes an entertainment setup designed for use at home to mimic the experience of being in a movie theater, typically including components like a large screen and surround sound system.

Schedule

A plan for carrying out a process or procedure, giving lists of intended events and times.

Takt Time

The rate at which a completed product needs to be finished in order to meet customer demand.