Investment Term For The Day - Tariff
May 25, 2022 ·
1m 17s
A tariff is a tax imposed by one country on the goods and services imported from another country. Tariffs are used to restrict imports. tariff imposed affects the exporting country...
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A tariff is a tax imposed by one country on the goods and services imported from another country.
Tariffs are used to restrict imports. tariff imposed affects the exporting country indirectly as the domestic consumer might shy away from their product due to the increase in price.
If the domestic consumer still chooses the imported product, then the tariff has essentially raised the cost for the domestic consumer.
Governments may impose tariffs to raise revenue or to protect domestic industries especially nascent ones from foreign competition.
Governments that use tariffs to benefit particular industries often do so to protect companies and jobs.
Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage.
show less
Tariffs are used to restrict imports. tariff imposed affects the exporting country indirectly as the domestic consumer might shy away from their product due to the increase in price.
If the domestic consumer still chooses the imported product, then the tariff has essentially raised the cost for the domestic consumer.
Governments may impose tariffs to raise revenue or to protect domestic industries especially nascent ones from foreign competition.
Governments that use tariffs to benefit particular industries often do so to protect companies and jobs.
Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage.
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