Mastergp
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Tariffs are taxes or duties imposed on important and exports by the government of a country. The idea behind tariffs is to restrict the volume of trade it improve the international terms of trade.
It has some important reasons and they are reasons why countries impose tariffs or restrictions on international trade which include the following:
To protect infant industries:
Tariffs are imposed to protect infant industries from undue competition with foreign firms.
Generation of revenue:
Tariffs are also imposed to generate revenue for the country. Many countries derived their revenue from import and exports duties.
To prevent dumping :
Tariffs are imposed to prevent dumping of goods from foreign countries, this is to prevent foreign goods from being sold at prices lower than the home price.
To improve balance of payments deficit:
By imposing tariffs on imported goods, the unfavorable balance importation will be discouraged.
Employment generation:
Countries impose tariffs to encourage the establishment of local industries or enhance the expansion and growth of existing ones so as to provide job opportunities.
It has some important reasons and they are reasons why countries impose tariffs or restrictions on international trade which include the following:
To protect infant industries:
Tariffs are imposed to protect infant industries from undue competition with foreign firms.
Generation of revenue:
Tariffs are also imposed to generate revenue for the country. Many countries derived their revenue from import and exports duties.
To prevent dumping :
Tariffs are imposed to prevent dumping of goods from foreign countries, this is to prevent foreign goods from being sold at prices lower than the home price.
To improve balance of payments deficit:
By imposing tariffs on imported goods, the unfavorable balance importation will be discouraged.
Employment generation:
Countries impose tariffs to encourage the establishment of local industries or enhance the expansion and growth of existing ones so as to provide job opportunities.
