Impact of international agrarian trade on market equilibrium
1998
Tvrdon, J. (Ceska Zemedelska Univ., Prague-Suchdol (Czech Republic))
The paper deals with an analysis of market equilibrium forming within open economy not influencing world prices. In spite of that the GATT agreement realization liberalizes international trade, a lot of protection measures having impact upon market equilibrium forming are still applied. From the viewpoint of their frequency, an analysis of tarrifs, import quotas, production subsidies and production control effects is taking place. The essence of those measures is price increase at domestic market above world prices. By applying of regulative measures transformation of consumer and producer surplus is realized which is described by the redistribution functions. From their shapes it is possible to derive social costs (benefits) of those measures. The efficiency of the regulative measures and their impact on market equilibrium forming depends upon size rate of measure and shape of supply and demand functions.
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