English presentation

1. IMPORT QUOTA
Presenter: Tran Vo Ngoc Chau

2. OUTLINE
1 – Definition and Purposes
2 – Effect
3 – Classification
4 – Import Quota vs Tariff
5 – Summary

3. Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary What is import quota?

4. Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary
Filling the gaps, using :
encourage, reduce
Import quotas are used to (1)…..the
imports and (2) …. domestic buyers to
purchase products from domestic
producers.
1.Reduce 2.Encourage

5. Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary
Protect domestic industries
and employment
Protect against unfair trade
practices
Protect national security
Look at three pictures and match
them with three reasons explaining
the use of import quotas.

6. Demand
Supply
Pw
Price
Demand
Supply
Pw
Price
Quantity Quantity
PA
QAQw
Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary

7. Demand
Supply
Pw
Price
Quantity
60
40Pd
40
Q1 Q2 Q3 Q4
a b c
= consumer loss
(a + b + c + d)
= producer gain (a)
= quota quantity (c)
1
a
c
d
Which are quota quantity, producer gain , consumer loss ?
1
Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary

8. Difference
Import Quota
Absolute Quota
CANNOT import
above the limit
Tariff-rate Quota
CAN import above
the specified
quantity with higher
tariff
Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary

9. Name 4 items that Vietnamese government apply
tariff-rate quota?
Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary

10. Features Tariff
Import
Quota
Decrease welfare of domestic consumers
The government can directly control the imports
Raising tax for the government
Can lead to administrative corruption
Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary
Which feature belongs to tariff,
import quota or both ?

11. Definition and Purposes
Effects
Classification
Import Quota vs Tariff
Summary
Purpose
Disadvantages
Advantages
Classification
Import
Quotas
(5)…………. (not limit the quantity)
Limit the (1)……………..
Reduce dependence on other nations
Raise no revenue from the imports
Protect (2)……………...industries
May cause (3)……….
(4)……….. (limit the quantity)
corruption tariff rate quota
absolute quota imports domestic