IA (Eco) Economics IA article criterion query

[Aryaman Doctor]

i have to do my final Econ IA and was interested in doing a stockholders analysis of Quebec's separation form canada. Qubec has not separated yet, but i wanted to gage the effects can an article pertaining to this hypothetical, remotely possible event . can this be done

[YellowSpider]

i have to do my final Econ IA and was interested in doing a stockholders analysis of Quebec's separation form canada. Qubec has not separated yet, but i wanted to gage the effects can an article pertaining to this hypothetical, remotely possible event . can this be done

by any chance do you mean stakeholder analysis? that's a topic in my B&M course.

what unit would this commentary pertain to?

well, i don't really get your whole idea, but i think talking about possible effects is part of the evaluation.. but wait, you really can't write a commentary on this topic unless the article is specific, or at least, if you highlight certain parts of the article. simply the effects of separation is a huuge topic, i think it'd be huge for the EE as well.

[Aryaman Doctor]

i have to do my final Econ IA and was interested in doing a stockholders analysis of Quebec's separation form canada. Qubec has not separated yet, but i wanted to gage the effects can an article pertaining to this hypothetical, remotely possible event . can this be done

by any chance do you mean stakeholder analysis? that's a topic in my B&M course.

what unit would this commentary pertain to?

well, i don't really get your whole idea, but i think talking about possible effects is part of the evaluation.. but wait, you really can't write a commentary on this topic unless the article is specific, or at least, if you highlight certain parts of the article. simply the effects of separation is a huuge topic, i think it'd be huge for the EE as well.

that's what i meant stakeholder analysis, it would pertain to international trade and more specifically to the affects on trade since Quebec is going to be using the same currency as well as majority of the monetary an fiscal policies

[Aryaman Doctor]

my article : http://globalnews.ca/news/1220846/the-politics-of-canada-without-quebec-a-situation-that-could-go-from-bad-to-worse/

[YellowSpider]

my article : http://globalnews.ca/news/1220846/the-politics-of-canada-without-quebec-a-situation-that-could-go-from-bad-to-worse/

is it part of the international econ. unit? what economic theory do you plan on applying here

[vedant dhanuka]

According to the article, Indonesia is the largest producer and exporter of palm oil. Similarly, India is the largest importer of palm oil. Since, the domestic consumers of India started purchasing imported palm oil rather than the one produced domestically, the government of India intervened by imposing custom duties on palm oil. But the Indonesian government, in order to make the Indian consumers purchase Indonesian palm oil, decreased its export tax for oil. As the palm oil was shipped to India through Malaysia, the Malaysian government reduced its cargo prices in order to make the shipments constant.

Tariffs: “also known as customs duties, are taxes on imported goods, and are the most common form of trade restriction. Tariffs may serve two purposes. One is to protect a domestic industry from foreign competition (a protective tariff), and the other is to raise revenue for the government (a revenue tariff).”

Effects of a tariff

In free trade, country’s world price is Pw which produce quantity Q1. When India increased the price of palm oil (imported good) it resulted in the rise in price, to Pw + t causing the Indonesia’s palm oil price to increase in India’s domestic market.

Effect of the tariff,

· The figure above shows there is an increase in the quantity supplied which is a result of the increase in price. But it causes a decrease in the quantity demanded and a decrease imports. Domestic quantity supplied increase in from Q1 to Q2 which is seen at Pw + t and domestic demand falls from Q4 to Q3, where as import quantity also falls to Q3 to Q2.

· Tariff worsens off domestic consumers because of the price increases from Pw to

Pw + t, Hence for the consumer it is always a loss from the tariff. As they have to pay a higher price and it decrease quantity demanded.

· Tariff better off domestic producer’s as they gain a higher price. Pw + t. Their products are produced in larger quantities Q2 (more than Q1). Another reason for profit, there is a decrease in the competition from international producer (produce same goods) as their goods price increase in the domestic market.

· Increasing or implementing tariffs are not only better off for producer but also increase domestic employment and gains government by increase its total revenues. As domestic producers sell larger quantity then before it results in increasing employment in the domestic economy. The shaded area in figure 13.7 represent amount of revenue received by the government from tariffs (of that particular goods; in this case palm oil) tariffs are paid to government and collected from consumers which then add up to the revenue of the country ( country economy).

· In some cases tariffs are worse off for producers of both kinds’ domestic as well as international producers. The increase in domestic output can result in inefficient work of domestic producer’s and also result in a waste of scarce resources. It shows before implementing tariffs, domestic producers were inefficient, as their prices were higher than international producers (exports the same goods; in this case palm oil) “the tariffs therefore causes an increase in production by relatively inefficient producers”. Where as in case of international producers by, Pw + t for their export goods. Now, their exports reduce. As quantity demanded is reduced. “The exporting countries therefore lose export revenues due to the fall in the quantity of exports”.

Hence concluding I can say that to compensate the increase in import tariffs by India, the Indonesian government has decreased its export tax on the same commodity that is palm oil.

This export tax reduction can also be viewed as provision of a grant by Indonesian government for its domestic producers to reduce their cost of production of palm oil and increase the quantity produced so that India remains the largest importer of the palm oil and keeps importing the same quantity or may be the larger quantity in spite of increasing its import tariff.

eco_3 (1).docx