Tariffs, Quotas and the Terms of Trade

In: The American economist: journal of the International Honor Society in Economics, Omicron Delta Epsilon, Band 36, Heft 2, S. 81-84

Abstract

This paper attempts to show another difference between tariffs and quotas in their economic effects. While a country's terms of trade could deteriorate after it imposes a tariff, a country's terms of trade will always improve after it imposes an import quota or an export quota. The offer curve approach is used in this study.