Indonesia Import Tariffs

Refer to table in the word document.

(a) Illustrate with a diagram the domestic demand and supply diagram for any particular Good from the table given that is affected by the import tariff and show the import tariff that eliminates the assumed import of the particular Good you have chosen.

(b) Analyse how the increase in import tariff can affect on the price-quantity of the following:

(i) domestic consumers (ii) domestic producers
(iii) foreign exporters

(c) Explain if the effects of a quota create the same amount of imports?

(d) Explain what is optimum tariff?

(e) Explain what are the likely actions exporting countries to Indonesia could take for the tariffs reach their optimum.

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