Quotas and tariffs

Sometimes the government can encourage or discourage imports and exports of goods. It imposes quotas on certain products. An export quota specifies how much of a product can a manufacturer ship out. An import quota allows you to import to certain limit. The quota may be absolute (we reach a certain amount and can ship no more) or the government can combine it with a special tariff on all units over that amount. For example, we had an import quota of 6.000 automobiles. We had bought 6.000 automobiles with a 6.5 % tariff by the end of the last year, and all others we bought with a 45 % tariff.

The government also imposes special taxes or duties on imported goods. These are tariffs. Tariffs discourage imports because they make foreign goods more expensive. There are revenue tariffs that generate tax revenues and protective tariffs that protect home manufacturers. The purpose of the revenue tariffs is to raise money, and therefore these tariffs are rather low. The protective tariffs are much higher.

The faculty of economics

The faculty of economics is one of the largest in BSU. In educational program there are basic specialties in this faculty. “Bookkeeping, analysis and audit”, “Anti-crisis management”, “Mathematical methods in economy”, “The state and municipal management”, “Taxes and taxation” has been added to these specialties.

It was founded in 1997 on the basis of the Department of Low.

Development of the faculty of economics shows a role and its place in system of preparing economics workers in RB. For the last five years in new conditions of development of economy, occurrence of the competitive environment in the market of educational services has entailed changes in the organization of activity of the economic faculty. 1743 students study on the faculty, including 1119 full-time students with 566 students studying part-time.

Biography of Adam Smith (1723—1790)

Adam Smith was born in 1723 in Scotland. His father, who had held the pest of ''controller of customs" at the Scottish border, died some six months before his birth. His mother, Margaret Douglas, came from a family of substantial landowners. At around the age of 5 Adam Smith was kidnapped by a band of Gypsies, but he was quickly rescued by his uncle and returned to his mother.

At the age of about fifteen, Smith proceeded to the University of Glasgow. In 1740 he entered Balliol College of the University of Ox­ford. At Balliol College Smith was taught in line with the traditions of Classical scholarship and also seems to have interested himself pri­vately in philosophy. He did not feel he was being educated in line with his own interests; he also fell into the disfavour of the authorities due to his taking a great interest in the "atheistic" philosophical works of Da­vid Hume. So, he quit his scholarship and returned to Edinburgh in 1746.

In Edinburgh with the sponsorship of the lawyer and philosopher Lord Kames, he was facilitated in giving a number of public lectures. These lectures brought him to the attention of the intellectual public. In 1751, at age twenty-eight, he became a professor of Logic at Glasgow, and then, the following year, took the Chair of Moral Philosophy.

Smith was a reserved, bookish, and absent-minded individual. Though often awkward in social situations he acquired a great reputa­tion as an interesting and animated lecturer. In his lecturing he fol­lowed Francis Hutcheson's example of lecturing in English rather than the traditional scholarly language — Latin.

Glasgow, in these years, was a center of the "Scottish Enlighten­ment", and in his spare time Smith socialised with James Watt and Da­vid Hume and also with many representatives of the merchant class of a rapidly economically expanding city.

In 1759, Smith published his Theory of Moral Sentiments, a work in which he principally sought to reflect about the source of man's ability to make moral judgments given that men are also much inclined to look to their material self-interest and self preservation. In 1763 he with­drew from his posts at the University of Glasgow to take on the highly lucrative role of private tutor to Henry Scott, 3^rd Duke of Buccleuch, whom he was to accompany on an eighteen month 'Grand Tour" in Eu­rope. It seems that it was his Theory of Moral Sentiments that had at­tracted the attention of the Duke's guardians to considering him as a tutor for the Duke.

As tutor to the Duke Adam Smith found some of the time spent in the French provinces hard to fill and actually seems to have begun his masterpiece An Inquiry into the Nature and Causes of the Wealth of Nations, as a way of taking up otherwise idle hours in the summer of 17f)4. In Geneva, where the Duke's party stayed for two months, Smith met Voltaire. In Paris he met amongst others, the "Physiocrat" economic theorist Quesnay and the French Ministers, Turgot and Necker, as well as his old friend David Hume who held a diplomatic post there.

On his return to London Smith stayed there for some time and met amongst others Edmund Burke, Samuel Johnson and Edward Gibbon. It was during this time that Adam Smith was elected a member of the Royal Society.

He then returned to Scotland where he stayed quietly with his mother at his native town of Kirkcaldy and occupied himself in study and writing. It was in 1776 that he finally saw his Wealth of Nations through the press.

In 1777 he was named Lord Rector of the University of Edinburgh and in 1778 was appointed as commissioner of customs in Scotland. This post was well paid and Smith volunteered to quit the pension he was being paid by the Duke of Buccleuch. The Duke however preferred that he should continue in receipt of the pension.

On July 17^th, 1790, Adam Smith died at Edinburgh; he was buried in the Canongate churchyard.

Powerful movements that led to the emergence of Modern Capital­ism are substantially based on Smith's work. Therefore, he deserves to be regarded as one of the most dramatically influential philosophers or philosophic writers of modern times.