ARBUS301 Chapter 7: Reading 5 – Chapter 7
26 Jan 2019
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Document Summary
Market liberalization and free trade are best for supporting economic growth and national living standards. A tariff is a tax a government imposes on imported products, effectively increasing the cost of acquisition for the customer. A non-tariff trade barrier is a government policy that impedes trade through means other than explicit tariffs. Four reasons governments impose tariffs, nontariff barriers, and other interventions: To ensure citizen safety, security, and welfare. To pursue economic, political, or social objectives. Protection of the national economy: blocking imports can reduce the availability and increase the cost of products sold in the home market. National culture and identity: certain occupations, industries, and public assets are national assets and governments may impose trade barriers to restrict imports of products or services seen to threaten these assets. National strategic priorities: government intervention sometimes aims to encourage the development of industries that bolster the nation"s economy. Increasing employment: governments often impose import barriers to protect employment in designated industries.
