Trade Analytics Assignment 2

Group 2 Section B

Ankit Moonka (8B)

Archit Garg (12B)

Atul Kolte (14B)

Dinesh Kankala (26B)

Pola Venkat Abhijeet (35B)

Reporter – India
Product – 220830 – Whiskies

Given Tariff – 150%

 Export Supply Elasticity = 99

Substitution Elasticity = 1

The most likely tariff change according to us is 25% from 150%.

Reasons: The % change in exports is 2.71% < 10%

The % change in government revenues is 4.67% < 10%

The % change in imports is 8% < 10%

The Net Welfare is 18904878 USD

The country which has most negatively affected due to reduction in tariffs is UK

As we change the substitution elasticity, the optimum tariff comes to 25% which is same and the net
welfare increases.

 Export Supply Elasticity = 12

Substitution Elasticity = 1.5

The most likely tariff change according to us is 0% from 150%

Reasons : The % change in exports is 4% < 10%

The % change in government revenues is 9% < 10%

The % change in imports is 8% < 10%

The Net Welfare is 15930351 USD

The country which has most negatively affected due to reduction in tariffs is UK.

As we change the Export supply elasticity, the optimum tariff comes to 25% which is same and the
net welfare reduced.

 Earlier the optimum tariff was 25 %

Reasons : The % change in exports is 0.612% < 10%

The % change in government revenues is -5.78 % < 10%

The % change in imports is8.21% < 10%

The Net Welfare is 18801920 USD

The final conclusion for whiskies Tariff can be kept at 25% percent.
No change from previous assignment 1.

Reporter – US
Product – 200811 – Groundnuts

Given Tariff – 78.6%

 Export Supply Elasticity = 12

Substitution Elasticity = 1.5

The most likely tariff change according to us is 0% from 78.6%

Reasons : The % change in exports is 0.024% < 10%

The % change in government revenues is 0.067% < 10%

The % change in imports is 0.0025% < 10%

The Net Welfare is 158677 USD

The country which has most negatively affected due to reduction in tariffs is Canada.

As we change the substitution elasticity, the optimum tariff comes to 25% which is same and the net
welfare increased.

 Export Supply Elasticity = 99

Substitution Elasticity = 1

The most likely tariff change according to us is 10% from 78.6%

Reasons : The % change in exports is 1.47% < 10%

The % change in government revenues is 6.09% < 10%

The % change in imports is 0.23% < 10%

The Net Welfare is 148906 USD

The country which has most negatively affected due to reduction in tariffs is Canada.
As we change the supply elasticity, the optimum tariff comes to 25% which is same and the net
welfare increased.

 Earlier the optimum tariff was 10%

Reasons :

The % change in government revenues is -4.4 % < 10%

The % change in imports is 0.17% < 10%

The Net Welfare is 127633 USD

The country which has most negatively affected due to reduction in tariffs is Canada .

The final conclusion for groundnut Tariff can be kept at 10% percent.
No change from previous assignment 1.