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Pros and Cons of Tariff Student Name Institution Course Date Pros and Cons of Tariffs Tariff refers to the tax imposed on the export and import goods. In general, tariff refers to the import duties charged when goods are brought in the country. Tariff charge is a common exercise for every country because it serves many purposes. The most common purpose of the tariff charge is to raise the country’s revenue. Additionally, tariffs in many countries are meant to protect local or domestic markets from foreign competition. This is because the lack of tariffs in a country is likely to lead to more imports hence flooding the local or domestic markets of a country. This is done through the use of tariffs quotas of all goods imported into the country (Vaknin, 2014). It is important to note that tariffs help to fulfill the punitive function of the country. Punitive tariffs, in this case, are meant to remedy trade alteration as a result of the measures exercised by other countries. A good example, in this case, is the antidumping pact which permits states to adopt the antidumping –rates to correct the existing scenarios of discarding in the country. The most common effect of import charge is to increase the local charges in the state. A tariff prompted cost increase, forms a hole among charges in the exporting and importing states. This leads to the rise in production of the importing country, while the general demand falls hence creating an important need to protect industries of the country. It is significant to note that tariff imposition in a country is accompanied by several advantages as well as disadvantages. These pros and cons are likely are equally
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