Because export taxes on are frequently seen as falling on foreign consumers, they tend to be favored as revenue sources by many countries. What assumptions are necessary for export taxes to be born entirely by foreign consumers? How likely is it that this set of assumptions characterizes the current world market for food commodities such as coffee or oranges?

There are some key assumptions to consider for export taxes to be completely borne by foreign consumers: 1. Perfectly inelastic demand: In this case, foreign consumers are not sensitive to price changes; thus, any change in the price of the product due to export taxes would still result in the same quantity demanded. 2. No substitution effect: There should be no readily available substitute goods in the foreign market. If there are substitute goods available, consumers will switch to those substitutes when prices go up, leading to decreased demand for the taxed product, and the exporting country would bear some of the tax burden. 3. Monopoly power of the exporting country: The exporting country should have a significant market power, either as a monopoly or as a dominant player in the market. This would mean that the exporting country has the ability to set prices without losing significant market share to competitors. 4. Foreign consumers have no bargaining power: The consumers in the foreign market should have little to no ability to negotiate the prices, which means that they have to accept the prices set by the exporting country.

Let's now analyze the likelihood of these assumptions being applicable to the current world market for food commodities such as coffee or oranges: 1. Perfectly inelastic demand: In the case of food commodities like coffee and oranges, the demand is not likely to be perfectly inelastic. Though consumers may have a preference for these goods, it is highly unlikely that they are entirely insensitive to changes in their prices. 2. No substitution effect: For coffee and oranges, there might be substitute goods available. For example, consumers may switch from oranges to other fruits like apples or grapes. However, for some niche products, this assumption might still hold true to some extent. 3. Monopoly power of the exporting country: While some countries have a significant share in the production and export of certain food commodities, it is unlikely that any single country has a monopoly or dominant market power for coffee and oranges. Consequently, the market is usually more competitive, and the ability of a single country to set prices is limited. 4. Foreign consumers have no bargaining power: In the current globalized world, consumers, particularly importers, have multiple supplier options. They can leverage their bargaining power to negotiate better prices and find alternatives when needed.

Based on the analysis, it is unlikely that the necessary assumptions for export taxes to be borne entirely by foreign consumers hold true for food commodities such as coffee or oranges in the current world market. The demand for these products is not perfectly inelastic, substitutes are available, monopoly power is limited, and foreign consumers have some bargaining power. Therefore, export taxes may not be completely borne by foreign consumers and could also affect exporting countries.