Impact of Export Subsidy on Demand, Supply and Price Assignment

Impact of Export Subsidy on Demand, Supply and Price - Assignment Example For this reason, therefore, the effects of subsidies on the economy are often separated into short term and long term effects. It is mostly argued that although in the short run these subsidies prove to be a quick remedy for lifting up weak industries and promoting their growth, in the longer run the same tool proves to be detrimental for industries who then become permanently dependant on the state for it. This report attempts to analyze a particular form of subsidy known as an export subsidy in terms of its intended aims and its actual effects on the economic structure. The aim of this report is to analyze the economic impact of an export subsidy in an open economy (Australia in this case). The analysis shall begin with a thorough conceptual analysis of an export subsidy and its nature, followed by its effects on output and price as well as economic welfare and government budget. The report concludes with recommendations for government policy along with potential limitations of thi s economic analysis. 2.0 Export Subsidies Export subsidies have since long been used by governments as part of their policy to enhance export of locally produced goods and dampen the sale of locally produced goods in the local market. ... Also, export subsidy is an alternative to the provision of production subsidy to producers competing with imported goods in the domestic market. Simply put, the export subsidy is a motivation for local producers to increase their supply of exports as opposed to goods for domestic consumption (Carbaugh, 2010). 2.1 Impact of Export Subsidy on Demand, Supply and Price Considering that wine production is a part of the agricultural industry, export subsidies may be imposed by these in order to enhance their exports. Assuming that wine is a homogenous product and that it operates in a homogenous market, the analysis of the Australian government imposing export subsidies is simplified. An export subsidy will cause the domestic production to increase, thereby enhancing exports in turn (World Trade Organization, 2006). The domestic price of wine will rise provided that Australian simultaneously embarks on a policy of banning any re-imports. The greatest assumption here is that the Australian economy (the economy where export subsidy is imposed) is a price-taker (selling homogenous wine); hence, the resulting outcome will not have any influence on the world price of wine. If this assumption was dropped and the Australian economy was assumed to be a â€Å"large† economy in terms of wine, then the resulting economic changes would have driven changes in world output and resulted in inefficiencies as far as international trade is concerned. In that case then, the resulting increase in exports would have driven down world price of wine depending on the share of world wine production that Australia holds with respect to other countries (World Trade Organization, 2006). The simplistic case of

Important Moment in My Life from the Viewpoint of Others Essay

Important Moment in My Life from the Viewpoint of Others - Essay Example Clarity of thoughts entails mastery of the language that will be used in writing. A grammatically correct piece can easily convey its message. That piece of writing should not lose its focus and aim for its target audience's heart. I had a fair share of memorable experiences since childhood. I cannot forget the first time I went up on stage to receive my academic award on first grade. As I grew older, the wrong decisions I made also left a mark in my life because of the lessons I learned from it. I can enumerate a number of occurrences that I consider important; but, to my family and friends, the most important event that ever happened to me is my affiliation with the Internal Revenue Service (IRS). IRS is one of the largest financial institutions in the world. Since 1987 to date, I am an enrolled agent of IRS. When I moved to San Diego, I got interested with a promising career of becoming an Enrolled Agent (EA) of IRS. Although I love writing, I am more fascinated with numbers. Hence, I took the EA examination. It was quite difficult because I had to study and master the information from hundreds of different IRS publications that contains thousands of pages. Yet, I passed the exam in just one take. My tax practice began in October 1987. ... I earned a good reputation within the community and the government sectors. I agree with my family and friends that my business achievement is the most important moment in my life, so far. I enjoy great benefits from this profession and it also enables me to spend quality time with my family and friends. I may not be an employee of IRS, but the ten reasons given on the question 'Why it is rewarding to work with IRS' are agreeable (Internal Revenue Service [IRS], 2007). Among the reasons that fit my experience is that IRS has continuously given me the opportunity to improve my skills. In my two decades as an enrolled agent, I have been to a number of IRS-sponsored seminars to upgrade my knowledge on US Tax Law and improve my expertise. Being an enrolled agent has further developed my sense of responsibility for important work. This career has enabled me to ensure that American nationals are aware of their responsibilities with the State and pay their taxes religiously and honestly. I must admit, this line of business is coupled with a lot of temptations. Some of my friends asked me if I ever gave in to the tempting power of money. Indeed, a number of non-compliant taxpayers would offer a large amount of money just to alter the entry in their tax returns. I had a battle with my personal code of conduct. But the fight with my inner-self quickly vanished as my principle prevailed. In a way, the United States Internal Revenue Service has enriched my values. Among these values are integrity to uphold the highest standards of honesty, reliability and honor; accuracy in ensuring precise and thorough work products; respect for every peoples' cultural difference and ideas; and, professionalism in achieving excellence (IRS, 2007). Somehow, I am glad that my family and