Tariffs

Tariffs

Protectionism is the economic policy of protecting the industries and agriculture of a pass on against foreign rivalry through government intervention. It occurs when integrity nation erects barriers to trade with other countries. These barriers can take many forms much(prenominal) as: taxs, quotas

or other technical rules. Governments often wasting disease more than one of these barriers to protect local

industries against unfair foreign competition. These barriers may alike be in reaction to

dumping, the practice of selling goods overseas at less than their true cost--a practice indulged in by firms seeking to gain market sh ar or by state-subsidized firms that can afford to absorb the loss.

Tariff is a tax largely imposed by a government on imports and, in some instances, on exports. Originally, it was levied to raise revenue. After the growth of labor and the formation of theme economies, tariffs were imposed chiefly as instruments of national economic policy. Tariffs is imposed to protect domestic industries against foreign competition and to achieve a promoteable balance of trade. These practices also take to the levying of high and often discriminatory tariff by one government as an expression of hostility to another government.

In modern years, the use of tariff in the world economy has declined and the use of other a variety of other restrictions has increased.



Average tariff level have fallen in most of the countries, largely as a result of international negotiation conducted beneath General Agreement on Tariffs and Trade (GATT), and now know as World Trade Organization (WTO), a fabrication for international discussion of trade issues. Most of the countries also favor free trade and denying protectionism.

In an International trade environment, there are many arguments for trade protection. The historical prevalence of protectionist policies reflects in cave in the strength of industrial vested and the fearful...

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