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  • 10 - Protectionism - Exercise - Filled 2

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    phamhung07121999
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    The document discusses four trade practices - limiting the size of family farms, taxing used car imports, subsidizing milk production, and requiring documentation for foreign workers' health insurance. It identifies limiting the size of family farms to 300 hectares as a quota, with advantages of more employment and land use variety but disadvantages of small farms struggling and less competition. Imposing a tax on used car imports is labeled a tariff, with benefits of government revenue and limiting poor quality cars, but higher used car prices and skewed competition. Paying HUF 10 per liter of milk produced is identified as a subsidy, which supports local producers but gives them an unfair advantage over foreign competition. Requiring documents

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    10_protectionism_exercise_filled 2

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    The document discusses four trade practices - limiting the size of family farms, taxing used car imports, subsidizing milk production, and requiring documentation for foreign workers' health insurance. It identifies limiting the size of family farms to 300 hectares as a quota, with advantages of more employment and land use variety but disadvantages of small farms struggling and less competition. Imposing a tax on used car imports is labeled a tariff, with benefits of government revenue and limiting poor quality cars, but higher used car prices and skewed competition. Paying HUF 10 per liter of milk produced is identified as a subsidy, which supports local producers but gives them an unfair advantage over foreign competition. Requiring documents

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views2 pages

    10 - Protectionism - Exercise - Filled 2

    Uploaded by

    phamhung07121999
    The document discusses four trade practices - limiting the size of family farms, taxing used car imports, subsidizing milk production, and requiring documentation for foreign workers' health insurance. It identifies limiting the size of family farms to 300 hectares as a quota, with advantages of more employment and land use variety but disadvantages of small farms struggling and less competition. Imposing a tax on used car imports is labeled a tariff, with benefits of government revenue and limiting poor quality cars, but higher used car prices and skewed competition. Paying HUF 10 per liter of milk produced is identified as a subsidy, which supports local producers but gives them an unfair advantage over foreign competition. Requiring documents

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Free Trade and Protectionism:

    Decide for each of the following practices whether it is:


    tariff, subsidy, quota, administrative regulation
    And then give one advantage and one disadvantage you can think of concerning each practice.
    Practice Type Advantage / disadvantage
    The maximum size of a QUOTA +More people can be employed in the agriculture sector.
    “family farm” is limited to +Advance proper use of land, and more variety, good
    300 ha. for “green issues.”
    - Small farms may not be enough to survive.
    - Disadvantage at competition with larger farmers
    elsewhere, technological issues

    Used cars brought into TARIFF +Income to the treasury


    Hungary must pay a +Limit the number of old/bad cars in the country
    “registration tax” of +Motivate buyers to support domestic traders
    around HUF 300,000. - Increases the price of used cars
    - More maintenance money paid for used cars
    - Skews (deforms) competition
    For each liter of milk SUBSID +Keeps the customer price lower
    produced, the government Y +Motivates to produce more
    pays HUF 10 to the +Better quality
    producer. +Supports “strategic industry” of agriculture
    - Unfair advantage to domestic producers against
    producers in other countries.
    A Hungarian working in ADMINI +Promotes safe and legal work environments
    Slovakia must obtain four STRATI +Regulate work with foreigners
    different documents to VE - Makes it harder to work in another country
    prove his eligibility for REGUL
    health insurance. ATION

    Free Trade and Protectionism:


    Decide for each of the following practices whether it is:
    tariff, subsidy, quota, administrative regulation
    And then give one advantage and one disadvantage you can think of concerning each practice.
    Practice Type Advantage / disadvantage
    The maximum size of a
    “family farm” is limited to
    300 ha.

    Used cars brought into


    Hungary must pay a
    “registration tax” of
    around HUF 300,000.

    For each liter of milk


    produced, the government
    pays HUF 10 to the
    producer.

    A Hungarian working in
    Slovakia must obtain four
    different documents to
    prove his eligibility for
    health insurance.

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