• Free trade the world will be able to maximize output and profits for each of the countries involved in it. But in reality, virtually every country still applying various forms an obstacle to maintaining international trade freely, especially those closely related to practice and trade or commercial interests of each country. These barriers commonly called trade policies (trade policy) or commercial policies (commercial policy).
• One of the most important trade barriers are tariffs. Rates is a form of trade policies of the oldest and has traditionally been used as a source of government revenue for a long time.
• The types of rates from the aspect of the origin of commodities namely:
1. Import tariffs , which is a tax levied on every commodity imported from other countries.
2. Rates of export (export tariff), which is a tax on a commodity that is exported.
• The types of rates in terms of the calculation mechanism, namely:
1. The rates of ad valorem (ad valorem tariffs), is a tax levied by the numbers specified percentage of the value of imported goods. For example: a country's rate of 25% levy on the price of each unit of an imported car.
2. Specific tariffs , is the rate charged as a fixed load unit of goods imported. For example: charges three dollars for every barrel of oil.
3. Rates mixture (compound tariff), is a combination of ad valorem tariffs and specific tariffs. In addition to impose a levy in a certain amount, this rate also picked up a percentage again.
• The types of import tariffs:
1. Rates Single (Single Column Tariff) That tariff on imported goods in% for the commodities from any country.
2. Rates General (General / Conventiopnal Tariff) That the amount of rates for different commodities on imports of each country.
• The role of tariffs in industrialized countries has been decreasing in the modern era, especially for the manufacturing sector, as governments of various countries now prefer and are accustomed to protect their domestic industries by imposing various kinds and forms of non-tariff barriers.

Partial Equilibrium Analysis Due Entry Rates
Is the most appropriate analytical instruments to study the case of tariffs by a small country, and associations with domestic industrial output is also relatively small.

Impacts Partial Balance Due Entry Rates
• The impact of tariffs on consumption (consumption effect of the tariff), which reduced domestic consumption due to the imposition of ad valorem rates.
• The impact of the imposition of tariffs on production (production effect of the tariff), the increase in domestic products as a result of their fare.
• The impact of the imposition of tariffs on trade (trade effect of the tariff), which has been decreasing against imports.
• The impact of the imposition of tariffs on government revenue (revenue effect of the tariff), namely the creation of revenue for the government.

Impact Enforcement Against Rates Surplus Producers and Consumers
X commodity price increase of one dollar to 2 dollars resulting from the application of tariffs 100% by the government to import goods, in turn, will reduce consumer surplus and producer surplus will increase. Consumer surplus (consumer surplus) to measure the size of the customer benefits from the purchase, which is the difference between the actual price it pays to the price level that he could pay. Producer surplus (producer surplus) if the producer is able to sell goods that are higher than the price he wanted or he accepted with pleasure.
A consumer would be willing to pay 3 dollars for units of all 30 items X, whereas in reality they can buy it for one dollar, then they also enjoy a consumer surplus of 2 dollars. Similarly, when they acquire the unit 50, they are willing to pay 2 dollars so kosumen surplus of $ 1. While for the unit to 70th they are only willing to pay as little as 1 dollar so that the consumer surplus equal to zero. Secera whole before their total consumer surplus reached 122.5 dollars. When the government imposes a 100% tariff on imported goods, prices of goods X rose to two dollars. X purchases decreased to 50 units. Since the tariff, consumers will have to pay 100 dollars for 50 units of X. This causes consumer surplus decreased by 60 dollars from 122.5 dollars to 62.5 dollars. Thus, it is clear that the application of the import tariff reduces consumer surplus.
Before tariffs, prices of goods X is 1 dollar. In this situation, domestic producers only produce 10 units of X and for that they only earn 10 dollars. After the government imposed import tariffs, prices of goods X rose to two dollars. The domestic manufacturers increase production to 20 units so as to obtain 40 dollars. The increase in revenue of 30 dollars. Because that 15 dollars is the cost of production is 15 dollars then the rest is a surplus producer. It is clear also that the implementation of tariff increases producer surplus.

Cost and Benefit Rates
Rates may increase the goods in the importing country so that consumers in the importing country relative losers, while producers in the importing country gained keuntungan.Jadi bring rates at the same cost benefits.
When the government imposes a 100% tariff on imported goods, the prices of goods X directly experienced an increase of one dollar to two dollars. Consumption of these commodities also fell from 70 units to 50 units. At the same time, domestic manufacturers increase production from 10 units to 20 units. Imports fell from 60 units to 30 units and the government received revenues of 30 dollars in the form of import tax. This causes consumer surplus decreased by 60 dollars and increase producer surplus equal to 15 dollars. Of the total loss of consumer's, 30 of which are accepted by the government in the form of import tax, then 15 dollars or redistributed to the producers of X in the country in the form of increased rents or producer surplus, 15 dollars rest is the cost of protection (protection cost) or fees deadweight (deadweight lost) which is a form of losses to be borne by the economy of the country concerned.

Impact Imposition of tariffs
1. Prices of imported goods become more expensive
This led to a decline in consumption by consumers, manufacturers will produce goods where the marginal cost (marginal cost) equal to the price after the tariff.
2. redistributing revenues from domestic consumers to domestic producers.
3. Mereditribusikan revenue from abundant economic resources into other sectors less competitive resources.
Production component of the cost of protection or deadweight costs will increase due to the implementation of import tariffs. This resulted in the diversion of resources from economic sectors abundant resources (commodities commonly exported) to another sector whose resources are less competitive (which is more profitable commodities imported from other countries).
4. The negative impact of tariff distortion in the form of lost production
Rates causes domestic manufacturers to produce too many goods so that not everything can be sold at favorable prices
5. Consumption distortion loss that is causing consumers to consume goods too little

Tariff Structure Theory
Nominal rates are expressed as the number of import tax. In fact, rates have an impact greater protection than that number.
Olleh Therefore we must learn the definition, calculation method and the importance of the effective level of protection.

Effective Protection Level
Effective level of protection that is calculated on the basis of domestic value added, or the advantages of the process manifaktur in negreri, going far beyond the level of nominal rates (calculated on the basis of the final price of a commodity or as taxable). Domestic value added is equal to the final price of the commodity is reduced by the cost of imported inputs for the purposes of the domestic produksikomoditi.
The level of effective protection is important for producers and decision makers (who decides tariffs) to find out how effective government protection given to the domestic manufacturing process.
Basically, the imposition of tariffs or duties on imported goods will increase the price of goods produced by manufacturers in the country Yag. This impact is the purpose tariffs to protect domestic producers against import competition that are cheaper. But how much tariffs charged must be careful in deciding because it will affect how much protection is given.
Exemplarily: domestic wool fabric producers require imported wool is 80 dollars, and the international market price of wool coat so 100, and the government imposes a 10% tariff on wool coat so. Then the price of the coat in the country is 110. So the manufacturers benefit more than before in the wear rate, from the previous 20 to 30. And there is a rise in profit of 50% ((10/20) x100% = 50%). Thus the effective protection of 50%.
The level of effective protection is also usually calculated by the following formula:
g = effective level of protection bagels final commodity producers
t = nominal tariff rates charged to the final commodity komsumen
ai = the ratio of the cost of commodities imported inputs to the final price of the commodity in the free state tariffs
ti = nominal tariff rate on imported commodity imported.

Generalization and Evaluation Theory of Effective Protection
The relationship between the level of effective protection (g) and the level of nominal rates (t) tehadap final commodities, namely:
1. If the ratio of input commodities imported to the final price of the commodity in the free state rates (ai) = 0 then the level of protection for producers of final commodities (g) = nominal tariff rates charged to the final consumer commodities (t).
2. At any price to value ratio of the input commodity imports to haraga final commodity in the free state rates (ai) and the level of nominal rates of commodities imported inputs (ti), the greater the level of nominal rates (t), will semalin besr effective level of protection (g).
3. At any value for the level of nominal rates (t) and the level of nominal rates of commodities imported inputs (ti), the greater the ratio of imports to the price of commodities Inpu final commodity in the free state rate, the greater the value of the effective rate of protection (g ).
4. The effective protection rate (g) will be the greater (the same as, or smaller) than the level of nominal rates, if the value of the level of nominal rates of commodities imported inputs (ti) kebih small (equal to or greater) than the level of rates nominal (t).
5. If the ratio of the cost of commodities imported inputs to the final price of the commodity in the free state of the level of nominal tariff rates on imported commodities yanhg input is greater than the nominal tariff rate (t), then the effective rate of protection becomes negative.
Rates on commodity input will be the same as the same as the additional tax (VAT) for producers domestically which will increase the cost of production, and simultaneously will lower the level of effective protection for producers (sourced from tariffs for commodities final import into rival), sehinagga eventually are counterproductive and will reduce production levels domestik.Jadi, if the final tariffs against imported commodities will benefit producers, then tafit for commodities imported inputs would be detrimental mereka.Artinya level of domestic production under conditions of free trade is higher than in a state that prioritizes rates tariffs to protect and spur domestic production levels.
The weakness of the concept of the level of nominal tariff, among others, can not provide any indication of the level of protection that is actually from the government to domestic producers melaalui imposition of tariffs on commodities imported and also a lot in the industrial sector in many countries which have a tariff structure is small or zero for commodity inputs and rates are quite high for commodities imported final.

Keseimbamgan general impacts of tariff in a small country
When a small country imposes tariff on goods imports, akam not affect the prices of goods in the international market. But the price of goods domestic sendri has changed, so, parties must face the immediate implications of rising prices is that consumers and producers in the small state yamg bersamgkutan but the price of economy small state as a whole remained constant, due to price increases due to rate was offset by perciptanya income taxes for the government
Government dineraga small charge for this solely as a means to raise funds to subsidize consumer baga public. This means that small Negar government does not want to impose internal taxes that are too large to its citizens in order to finance various state expenditures, and instead, the government import levy taxes.

Illustration Imposition Rates Impact On Small Countries
With the tariff, the welfare of the State concerned is lower than the condition in future free trade.
The decline in welfare stems from two reasons, namely:
a. The economy is no longer produce at the point that maximizes the value of income and the price of the world
b. Consumers can no longer consume the highest indifference curve that maximizes welfare. Either (a) or (b) due to the fact that domestic consumers and producers face different prices with world prices. The decline in welfare (The Loss in Welfare) occurs due to inefficient production activities. It is a condition of (a) the equivalent of the general balance of the losses due to the distorted production (production distortion loss) described the approach to equilibrium partial in this chapter and symbolizes the decline in welfare sebagaiakibat of consumption are inefficient so this is also a (b) the equivalent of a loss distorted as a result of consumption (consumption Distortion Loss)
Trading volume decline with their fare. The volume and value of exports and imports both fell immediately after the implementation of tariffs was compared with previously when trading is still going freely.

Stolper-Samuelson theorem
This theorem explains that the increase in the relative price of a commodity (such as increases resulting from the imposition of tariffs) will raise income levels for the factors of production used intensively in the production of the commodity. Thus, the real yield rate of production is relatively scarce factor will increase as rates apply.
Ssalah imposition of import tariffs on commodities by the government of the importing country increases the price comparison in the country and within berrsamaan also increase the price or rate of return for labor (which is a scarce production factor in the country).
Overall, the economy of the importing country will suffer losses due to the tariffs. It will only benefit the owners of the factors of production is relatively rare (in this case labor), and the advantage they gained at the expense of the owners of the factors of production is relatively abundant in the country. This thought is always true for small countries, and almost always to the state-Negar great with a few exceptions.

Impacts General Equilibrium Of Entry Rates In Big Country
Entry Rates by large state government concerned will decrease the volume of trade, but at the same time will also increase the value of trade tukat (terms Of Trade). Trading volume itself tends to lower the level of welfare of the country as a whole was great, although on the other hand the rising terms of trade tend to increase welfare. Of course, increasing or decreasing the welfare of the country is determined by the superior strength, ie, whether the positive power of the improvement of trade or negative force caused by the deterioration of the trade volume.

Optimum rates
Understanding the Concept of Optimum and Revenge Rates Rates (Retaliation)
The optimum rate is the rate that maximizes the benefits derived nettoyang dariperbaikan terms of trade so as to release the negative impacts caused by reduced trading volume. Once a country to impose tariffs, it is to a certain extent welfare increases up to its maximum. At that point the charge is called the optimum rate. If the government of the country concerned to change that rate, it is no longer optimum rates that are no longer able to improve their welfare in fact, he will lose. In the end, the state is actually compelled to impose prohibitive tariffs that will only get him into autarky very adverse themselves.
Keep in mind, the influence of this optimum tariff will only last long, because other countries are becoming trading partners will experience a deterioration of terms of trade, and they certainly will not let this happen karen himself dirugikan.Peristiwa relations between the two countries that negatively reciprocal , That is, if the exchange rate of the country improves, the exchange value of the other countries will decline. If the state actors are still benefiting from rising rates of trade, the countries which are trading partners will suffer a double loss. Namely, first, merka trading volume plummeted, while the second, the value of trade exchange merka be worse than before. Therefore it is not surprising that countries that are trading partners will retaliate and come to apply tariffs of up to optimum level. Although this action may restore some lost revenue, this action actually more trading volume shrinks all countries.
Had another country trading partners did not retaliate rates, profits obtained by the countries where the rate is smaller than the losses incurred by its trading partners so overall the world economy still suffered a loss. Clear that the application does not raise rates any scenario better than the situation in conditions of free trade.
Illustration Rates Optimum and Revenge Rates
Negotiations and international trade agreements today considers optimum import tariffs as dangerous as last optimum.Yang export tariffs, small countries can not mencapaitarif optimum, because any tariffs applied by small countries such as deterioration of the consequences of trade accompanied with shrinking trading volume. Therefore it is not at all rates could improve the welfare of small countries. As for the big countries, rates will only meningkatkankesejahteraan if no action retaliation from trading partners, and such a possibility is virtually impossible because no country is willing harmed granted. So it is clear that the best choice for large and small countries are free trade.
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