Gradual reduction of tariffs and the elimination elite brands of a policy of import quotas and licenses, in line with government elite brands policy to reduce inflation | cover, restrictions on imports elite brands and a policy of export subsidies caused distortions and inefficient allocation of production factors | prosperity world today, provides Israel elite brands the opportunity to join the worldwide trend the opening of free trade policy - and should not be missed
Are the primary elite brands cause of the agreements that Israel signed with the common market and the United States. The second factor is the effect elite brands of lowering the possible cover price stabilization. Gradual reduction of tariffs and import elite brands licenses in line with government policy regarding the eradication of inflation. This is not a hidden fact noted by the Minister elite brands of Finance, elite brands the Secretary so often local manufacturers. elite brands The third factor, which provides that now's the time to start opening the economy to free trade, is the world's prevailing economic boom, which allows, more easily, increase exports from Israel, if the factors elite brands of production will be directed towards exports.
What's wrong policy of tariffs and other restrictions elite brands on imports, and a policy of export subsidies, a small country? The root of evil is that policies that restrict free trade leads to price distortions, ie relative prices between different products within the country the real price ratio - the World. In addition, elite brands a system of various taxes and export subsidies creates a multitude of effective exchange rates and discriminate between goods and services and other transactions in the balance elite brands of payments.
Known rule in economics is that each target is better elite brands to use direct policy. That is the government's goal to solve the problem of persistent balance of payments deficit, it is a macroeconomic problem, it must use a policy of change in the exchange rate, and a corresponding elite brands cut in the budget elite brands in order to release factors of production will be directed to create export.
About a large country like the US, affecting global prices, in some cases they should impose tariffs elite brands that thus change the terms of trade in its favor (that will result in lower prices of export products.) But the imposition of such a cover is included to bring trade war, after which levels would be reduced well-being of all the major countries participating in them. In addition, once the US government elite brands allows the imposition of tariffs, then enabled him to impose tariffs in pressure differential, rather than the correct considerations, and the right products. Prepare all these dangers, large states try to refrain from imposing tariffs.
That Israel has signed agreements with the Common Market and the United States, factors that Israel will have to cancel, not just cover with these countries, but also would be interested cancel cover with other countries. And if you do, you will lose precious state dollars. We will clarify this point with an example. Suppose that Israel elite brands imports from the Far East wires that serve as raw material for the textile industry. Following the elimination of tariffs with the United market, would be worthwhile to importers to import these wires from Europe, although the state still cheaper to import from the Far East. exporter does not consider that the state receives customs duties if the import is done from the East control. In this case, inefficient methods of amounts elite brands Zori- the country to eliminate tariffs. with the rest of the world, and undo the import becomes effective at the cheapest place.
Changes in global trade of all products (in percent)
Collecting taxes on civilian imports in 1984 was about one-fifth of the total tax collection in the economy. If the government elite brands can not give up such a large volume of absorption, with the elimination of tariffs, it could impose a purchase taxes on some luxury products as an alternative tariff.
Post by admin on May 28, 2014 in the category of inflation, exchange insurance, foreign debt, exports, foreign exchange and marked tags importation, Rafi Eldor, import, export, elite brands the State of Israel, customs, free trade, Rafi Eldor. Navigation on posts external debt - the number one economic problem of Israel's real depreciation preferable to levy import and export incentives
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