ipl-logo

A Comparison Of Tariffs Between Australia And New Zealand

1782 Words8 Pages

Abstract
Tariff is a tax levied by a government on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue. Thus the research assignment is based on a comparison of trade policy that is tariff rates between Australia and New Zealand. This research demonstrates how Australia and New Zealand have used tariffs which will show the effects, consequences and implications on both t countries’ Economic performance.

Introduction
A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. Tariffs provide additional revenue for governments and domestic producers …show more content…

Thus this causes production efficiency loss. There are other costs associated with tariffs. Whenever New Zealand imposes a tariff, it always runs the risk of retaliatory action from the import source, which may impose its own tariffs or other trade barriers on New Zealand’s exports.
With these costs in mind, it could be expected that removing tariffs in New Zealand would generate gains in economic efficiency. Resources would be allocated to the areas in which New Zealand has a genuine comparative or competitive advantage, and less efficient (protected) industries would contract. (NZIER, 2010)
The impact of tariff concessions will vary for different building materials. For example, concessions will have a small direct impact on materials that are imported from countries with which New Zealand has a free trade agreement (FTA) in place, as a lower tariff rate will already apply. Based on the number of new dwellings consented throughout New Zealand in 2013, the total savings to the economy could be over $19 million per year. Tariff concessions would have a negligible impact on the profitability of domestic manufacturers because tariffs are already quite low, although downward pressure may be created on …show more content…

A., and S. P. Magee. 1978. The economics of special interest.

Bhagwati, J., and T. N. Srinivasan. 1980. Revenue-seeking: A generalization of the theory of tariffs. Journal of Political Economy (December). politics: The case of the tariff. American Economic Review (May).
Consultants, C. (1997). Import Tariffs and Protectionism (history). Retrieved November 10th, 2014, from http://www.chemlink.com.au/tariff.htm
Mundi, I. (n.d.). Australia - Tariff rate. Retrieved November 9TH, 2014, from http://www.indexmundi.com/facts/australia/tariff-rate
Mundi, I. (n.d.). New Zealand - Tariff rate. Retrieved November 11th, 2014, from http://www.indexmundi.com/facts/new-zealand/tariff-rate
NZIER. (2010). Tariffs in New Zealand. Retrieved November 11th, 2014, from http://nzier.org.nz/static/media/filer_public/53/67/536738d3-47d5-4aee-b322-897fad0bc443/wp_2010-1_tariffs_in_new_zealand.pdf
Tariff. (2014). Retrieved November 10th, 2014, from http://www.investopedia.com/terms/t/tariff.asp
TARIFFS. (n.d.). Retrieved November 11th, 2014, from

Show More
Related

Treaty Of Ghent: The First Tariff In American History

291 Words | 2 Pages

The first tariff in American history instituted primarily for protection, not revenue. Its rates, roughly

Read More

Compare And Contrast Hamilton And The Federalists

314 Words | 2 Pages

Protective tariffs are a high tax put on imports proposed by Alexander Hamilton. They also wanted to form alliances with the British because they like the stability British had. Even more,

Read More

Naked Economics Chapter 8

725 Words | 3 Pages

During occurs when a firm sets a lower price (net of trade costs) on exports than it charges domestically. A consequence of trade costs is that firms will feel competition more intensely on export markets because the firms have smaller market shares in those export markets. This leads firms to reduce markups for their export sales relative to their domestic sales; this behavior is characterized as dumping. Dumping is viewed as an unfair trade practice, but it arises naturally in a model of monopolistic competition and trade costs where firms from both countries behave in the same way. Policies against dumping are often used to discriminate against foreign firms in a market and erect barriers to trade.

Read More

Andrew Jackson Dbq Outline

778 Words | 4 Pages

The tariff was a tax in 1812 and the tariff was designed to protect businesses in the northern states. They werent doing so well. Evidence:

Read More

Oh ! What A Lovely Trade War Summary

989 Words | 4 Pages

Trump’s base, as Krugman notes, welcomes the idea of a trade war with the expectation of the US coming out on top. Nevertheless, Krugman argues that trade wars are not the best scenario, because it may never happen in the first place. If the Trump administration was to pursue protectionist policies, it would just provide opportunities for other competitors; because in a game of consumers, the cheapest good wins. The US will have no part in a trade war or competition to begin with. Krugman explains that tariffs hurt the economy, because it spurs inflation and in response the Federal Reserve would raise interest rates, making the dollar stronger and hurting US exports.

Read More

Dazmac Importer Case Study

602 Words | 3 Pages

Tariffs and Duties The Department of Infrastructure and Transport levies duty tax and Goods and Services Tax (GST) on American car imports. The government bases duty tax on the vehicle and the GST on the value of the vehicle plus the costs to ship the vehicle to Australia. These taxes are set based on a percentage of these costs. An American car buyer can save money by using the correct method to calculate their automobile value.

Read More

Unit 201 Economic Decision Making Case Study

3236 Words | 13 Pages

They effect governments, producers and customers. And as explained above, when the government put Tariff on the non-Tasmanian products, that will raises the prices for both Tasmanian and Non-Tasmanian timber products. This benefits domestic producers by increasing producer excess, but domestic consumers see the Tariff as a loss for them. On the other hand, and since the tariff acts as a tax, the Australian government gains some revenue from the foreign countries. In this case, the only party who may suffer from imposing a tariff is the domestic customers.

Read More

Financial Similarities Between USAd Fiji

1616 Words | 7 Pages

have been working closely with New Zealand and both the countries are open to trade with New Zealand. Fiji is open to trade since 1996 after it became a member of the World Trade Organisation. On the other hand, U.S. has been actively participating in Trans-Pacific Partnership Agreement negotiations and is also open to trade with New Zealand in the same manner as Fiji as discussed in Task 1. Since both the countries are open to trade with New Zealand, introduction of Griffin’s product will not require special import licence requirements and both the countries may come up with tariffs that’s is favourable as agreed in TPP and WTO agreements. There are no such policies that might affect New Zealand’s trade with Fiji and the U.S since both the countries are working closely on its international trade agreements with New Zealand.

Read More

Foreign Competition In The 19th Century

176 Words | 1 Pages

Throughout the late nineteenth century, the United States of America underwent rapid economic development and surfaced as one of the world’s leading industrial powers. During this part of the century, the United States of America also preserved exponentially high import tariffs that focused on keeping out foreign manufactured goods. Intrinsically, tariffs were taxes on nonnative imports being sent into America. Tariffs denoted that foreign products could not challenge American goods because the addition of tariff fees to their vending prices would make them more costly than American manufactured goods. Therefore, American producers did not have to fret over foreign competition and could posit any prices they wished.

Read More

Donald Trump Tariff Essay

620 Words | 3 Pages

The tariff, in this case, is being placed on steel and aluminum in America by President Donald Trump. Due to the tariff, the domestic production of steel will increase from Q1 to Q2. This will, in turn, result in an increase in the price of steel from P1 to P2. Therefore, the tariff will reduce the shortage in the market for steel from Q1 supply/Q4 demand to the Q2 supply/Q3 demand, increasing the price for both domestic producers and consumers. From Q4 to Q3 domestic producers are importing less from America thus decreasing the demand, and from Q2 to QE producers are supplying more, bringing economic growth.

Read More

NAFTA And The Decline Of The Textile Industry

178 Words | 1 Pages

At the time of NAFTA implementation, the textile and apparel industries were on the decline. Employment declined in textiles as the industry faces intense international competition, and productivity boost through new technology improvement. The apparel sector, which is heavily dependent on low-skilled labor, was not internationally competitive for U.S. Given this fact, any relief of imports from Mexico, a low-wage country, were a further threat to the textile industry. The implementation of NAFTA immediately eliminated tariffs which give access for U.S. producers in denim, underwear, sewing thread, and many household furnishings. NAFTA tariff cuts and rules of origin give U.S. exporters greater market access and a price advantage up to 35%

Read More

Free Trade Before World War Essay

190 Words | 1 Pages

Before World War two, imports were based on tariffs and taxes on imported products and thereby forcing the products to be sold at a higher rate in those markets.. Today free trade as a new phenomenon helps when one country trys to sell its products to another country . In the other hand tariffs are actually good at protecting domestic companies. Tax on imported goods makes the own country’s products more competitive within the borders ,because the other competing products from outside the country are more expensive and this tax and tariffs on imported products is a protection agianst products within their own borders ,but on the other hand taxes raise consumer prices and that's generally a bad thing ,so it causes a trade off .

Read More

Elasticity Demand In Australia

557 Words | 3 Pages

Reference to page 2, illustrates production of automobile and fruit of two countries. Currently, Australia is producing 8 tonnes of fruits and 2 thousand of automobile where in Japan is producing 10 thousand of automobile and 2 tonnes of Fruits. It is very much clear from the page 2 calculations, that cost of product for fruits is lower in Australia while production cost for automobile is lower in Japan. It is possible for Australia to focus only on fruit production and Japan can manufacture only automobile then the can trade of their products. In this case Australia can trade fruits and Japan can trade automobile.

Read More

Factors Affecting The Biodiesel Industry

723 Words | 3 Pages

A on international economics there are various methods used by governments to restrict the flow of international trade in order to create trade protection. Trade protection has government intervention in international trade with the impositions of some barriers, that prevent the free entry of imports or to protect the domestic economy of a country.

Read More

Economic Protectionism Research Paper

991 Words | 4 Pages

In a case of agricultural production or mining, protectionist economies may enjoy a comparative advantage by establishing policies that prevent third parties from producing the same product. In a case of increased productivity in the infant and exclusively producing companies, other benefits may trickle to other industries in the form of raw material purchases, acquisition of new technology, and the creation of competent labor force for the economy (Ferrini, 2012). Evidently, the success of a protectionist economy highly depends on the interaction of the local industries, the government, and consumers in a move to promote the consumption of local commodities and promote the growth of infant industries. First, the government must introduce policies to protect and limit the number of international firms that have jurisdiction to produce or import certain commodities. Secondly, the local firm must embrace the market challenges and use government support to deliver quality goods at affordable prices.

Read More

More about A Comparison Of Tariffs Between Australia And New Zealand

Related Topics

Open Document