Tariff and Import Duties : Report
Added on 2020-01-23
13 Pages3586 Words41 Views
Political Science
|
|
|
Tariff and ImportDuties
Table of ContentsIntroduction .....................................................................................................................................3Main body .......................................................................................................................................3Conclusion ...................................................................................................................................11REFERENCES..............................................................................................................................12
IntroductionTariff is known as the tax or duty that need to be paid on a specific class of exports andimports. It is used for the purpose to restrict trade, because it enhance the price of importedproducts, in order to make them more costly for customers (Böhringer, Carbone and Rutherford,2016). Further particular tariff charge as a determinate fee which is based on type of item whilead- valorem tariff is fixed charge based on the item's value. Tariff is also consider as a amountthat paid by a country for exporting and importing the products and services. Products andservices which are traded their price get enhanced in case tariff being obligatory on the products.There are several tool provided in respect to shape mercantilism policy. Tariff is used for someparticular purpose such as government impose tariff so that it can enhance income or to protectdomestic industries from foreign competition. Customers mainly prefer to purchase those foreignproduct which price are cheaper (Bohi and Montgomery, 2015). Further it can be stated thattariff is very beneficial for the nation because it help in enhancing the earning of thegovernment which lead to raise the country gross domestic products. On the other hand Importduty is collectable on items from nations depended on based on outside the European Union.Further import duty is tax which is collected on exports and imports by the customer authoritiesof a country. Tax which is charges on goods is based on is based on value of the goods which isimported (Levin and Widell, 2014). The amount of import duty is depended on products andservices are which are bring or it may be shopped by post. It is charged as a percentage of thegoods' total value. Main body Tariffs and import duties- Affects on industries and the economies, cost and benefits of atariff.Duty and tariff both are known as tax which is imposed by the government on goods which isimported from some other country (Manova and Yu, 2016). A custom duty is called as indirecttax which government authorities imposed of a particular country on products and servicesimported by another nations. There are some affects and benefits of custom duty and tariff oneconomy and industries. Affect of tariff and import duties on economy 700
Tariff is known as the tax which is charged by government on products which areimported and exported including insurance of imported products. There are three differentsituation on basis of which government charges tariffs such as:In order to protect inefficient domestic and ageing from another country competition. For protecting fledgling domestic industries from foreign competition (Haaland andVenables, 2016).In order to protect from dumping by foreign companies top domestic producers. Furthermore dumping take place when foreign company charges low price in domestic market.In some of the cases too low prices is known as the price which is below cost, and due to whichproducers is losing money (Ciccarelli and Nuvolari, 2015). It can be stated that foreign tariffnegatively impact the economy of a country. The foreign tariff which increase the cost ofdomestic producers and it lead to sell them in less price at foreign markets. Further producers cutproduction due to this demand is reduce and it causes jobs to be lost. Due to job losses it directlyimpact other industries as the demand for customer products are reducing because of thedecrease in employment level. There are some causes of decrease in the economic health of acountry that is foreign tariff and other market restriction (Dreyer and Popescu, 2014). Tariffs area close to domestic producers who are at present facing reduced competition in their own countrymarket. Reduced competition lead to cause price to enhance. Further tariff is one of the obstacleto free trade. It is mainly obligatory to defend domestic industry from cheap imports. If there isreduction in tariff then it will lead to trade creation.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Tariff and Import Dutieslg...
|10
|452
|263
Effects of Tariffs on Industries and the Economylg...
|9
|3885
|80
Import Tariffs and Export Tax in International Economicslg...
|7
|2056
|215
Economic Arguments for and against US Tariffs on Chinese Goodslg...
|8
|2116
|411
Effects of Dumping on Indian Industries and Need for Anti-Dumping Duties on Chinese Goodslg...
|12
|2565
|497
Tariffs and Import Duties- Effects on Industries and Other Economies, Costs and Benefits of a Tarifflg...
|13
|3673
|475