Excerpt from :

......
Question 4

According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain

To resolve the Leontief paradox, Linder proposed a demand-side theory of international trade, suggesting that nations with similar demand patterns develop similar industries, and this is how an international marketplace with differentiated goods develops. Consumers with similar levels of income have similar tastes, and the more affluent the nation, the smaller the proportion of income consumers spend that income on primary (agricultural) goods (Bonham & Nilsson 2006, p.1)

Question 5

Describe a specific tariff, ad valorem tariff anda compound tariff. What are the advantage and disadvantages of each?

A specific tariff is levied upon an item as determined on a per unit basis, such as weight, number, length, volume or another unit of measurement. They are usually levied on foods, raw materials, and other input goods but can become prohibitively high and start a trade war if prices fall, making it highly unprofitable for a nation to export its goods (Tariff barriers, 2000, Secrets of International Trading). In contrast, an ad valoreum tariff is calculated as a percentage of the monetary value of the imported

Need this essay? If it's not quite what you're looking for there are over 50,000 more to search from, so you can find the term paper or essay that meets your needs.