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  • 引导案例8 1

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    jocelyyn emiliaa
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    From the 1960s to the late 20th century, global tariffs decreased by 11% on average while trade increased nearly 4-fold. The relationship between tariffs and trade evolved such that a 20% reduction in tariffs led to a 20-fold increase in trade, exceeding traditional theories. From 1960-1985, tariffs fell 9% as trade grew slowly, with only a 7% increase for each 1% tariff cut. However, from 1986-1999, though tariffs dropped just 2%, trade expanded rapidly as the tariff-trade elasticity increased over 50-fold, demonstrating significant nonlinear responsiveness.

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    引导案例8.1

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    From the 1960s to the late 20th century, global tariffs decreased by 11% on average while trade increased nearly 4-fold. The relationship between tariffs and trade evolved such that a 20% reduction in tariffs led to a 20-fold increase in trade, exceeding traditional theories. From 1960-1985, tariffs fell 9% as trade grew slowly, with only a 7% increase for each 1% tariff cut. However, from 1986-1999, though tariffs dropped just 2%, trade expanded rapidly as the tariff-trade elasticity increased over 50-fold, demonstrating significant nonlinear responsiveness.

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    9 views1 page

    引导案例8 1

    Uploaded by

    jocelyyn emiliaa
    From the 1960s to the late 20th century, global tariffs decreased by 11% on average while trade increased nearly 4-fold. The relationship between tariffs and trade evolved such that a 20% reduction in tariffs led to a 20-fold increase in trade, exceeding traditional theories. From 1960-1985, tariffs fell 9% as trade grew slowly, with only a 7% increase for each 1% tariff cut. However, from 1986-1999, though tariffs dropped just 2%, trade expanded rapidly as the tariff-trade elasticity increased over 50-fold, demonstrating significant nonlinear responsiveness.

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    © All Rights Reserved
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    of 1

    Opening Case

    From the 1960s to the late 20th century, the average level of global tariff had
    decreased by 11%, trade had increased by 3.4-fold. The elasticity of trade in relation
    to tariffs has evolved to be 20 to 1, which is far more than the traditional trade theory
    could estimate. From 1960 to 1985, tariffs had been slashed by 9%, but trade had
    grown relatively slowly, which is reflected by an elasticity of merely 7%. However,
    from 1986 to 1999, tariffs had decreased slightly by only 2%, while the total volume
    of trade had grown fast and the elasticity increased more than 50 times, showing a
    significant nonlinear variation feature.
    (Source: Xinqiao Ping. Group of China Economic Research Center in Beijing
    University. vertical specialization, intra-industry trade and trade relations between
    America and China[Z]. Discussion Paper Series, 2005-05-25)

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