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Subsidized Wheat Production in Japan

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Gao Erni

on 27 October 2013

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Transcript of Subsidized Wheat Production in Japan

Subsidized Wheat Production in Japan
Summary of the Article
Land shortage, low yield and high costs
Subsidies and tariff rate quota to keep inefficient Japanese business.
80 to 120 percent higher than the world price
Thousands of small farmers gains benefits and the losers are the Japanese consumers and foreign producers

Key Terms
Protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations

Subsidy is a government payment to a domestic producer. Subsidies can take many forms including cash payments, low interest loans, tax reductions and government equity participation.

Tariff Rate Quotas refers to a higher tariff rate imposed when wheat imports exceed the quota level.
Protection gives domestic producer an artificial advantage over overseas producers

Inefficient in the long-term

Summary of the Article
Key Terms
Presented by Ruby
The government use subsidies to keep inefficient Japanese wheat producers in business.
The farmers can produce wheat at lower costs.

Tariff Rate Quota System
Raises the price
Restricts supply
Raises the cost
Tariff rate quota
Full transcript