How Tariffs Affect the Economy [Reading - Mike Moffatt]

66 views2 pages

Document Summary

Three situations in which governments often impose tariffs: to protect fledgling domestic industries from foreign competition, to protect aging and inefficient domestic industries from foreign competition, to protect domestic producers from dumping by foreign companies or governments. Dumping occurs when a foreign company charges a price in the domestic market which is too slow . In most instances too low is generally understood to be a price which is lower in a foreign market than the price in the domestic market. In other instances too low means a price which is below cost, so the producers is losing money. The world bank estimates that if all barriers to trade such as tariffs were eliminated, the global economy would expand by billion dollars by 2015. The economic effect on tariffs can be broken down into two components: the impact to the country which has a tariff imposed on it, the impact to the country imposing the tariff.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions