In 350-500 words answer this economic naturalist question in your own word. Give
ID: 1117615 • Letter: I
Question
In 350-500 words answer this economic naturalist question in your own word. Give some reasons related to Economic principles.Why is the import fee of the European car in the United States expensive than in UK? In 350-500 words answer this economic naturalist question in your own word. Give some reasons related to Economic principles.
Why is the import fee of the European car in the United States expensive than in UK?
Why is the import fee of the European car in the United States expensive than in UK? Why is the import fee of the European car in the United States expensive than in UK?
Explanation / Answer
Robert Frank in 2006-2007,an Economist defined the theory of Economic Naturalist, when he was dealing with a group pf students who were studying economics but were not clear even about the basic principles of Economics.
Frank found the the very answer of Economics principle lies within our daily life. he was of the opinion that it is easy to teach using a narrative method rather than using graphs and equations. He was with a student group when he evolved that if we use our daily life experiences in understanding the fundamentals of economics it will not only help the students to undertsand the subject better but also will make them relate their own experineces with the subject and thus will make it east to study.
Robert Frank, in "Econnomic Naturalist writing assignment" published in the journal of Economic Education in 2006,defined that most of the time students whor undergoing a course in introductory economics in mid of the course leave it without even learning the important basic pronciples of economics.
To support this below is the explanation as to why the import fee of the european car in the US is expensive than UK.
1) European cars are no doubt made luxurious but it also involved heavy exchange rates and labour cost and therfore the import fee is more in U.S than UK.
2) Heavy VAT,excise duty,consumption taxes and other levies on European made cars is more in US in comparison to U.K and therefore on road cost of EU cars is way too high in States than United kingdom.
3) Specification of cars is also another reason why the import fee on EU cars is more in US. These particular Cars are manufactured keeping in mind ‘U.S spec’ which sometimes means more value to their built and hence custom chages a high import fee, US "Passat" is an example of such US Specific cars.
4) Branding is another reason as to why there is a variation in import fee of US and UK. Manufactureres of cars like BMW are aware that their face value in US market is awesumly good than a state like UK where people give importance to comfort. Hence, this emotional aspect is used wisely in charging their desired cost from US market on such EU cars and eventually it effects the taxes and import fee.
These are just the few basic principle of economics which when we relate to our daily lives gives us a better understaning to know the subjects like import/export fee.