Asked by Mackenzie Vatter on Jul 18, 2024

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It has been argued that tariffs harm consumers and benefit producers. Justify this argument.

Tariffs

Taxes imposed on imported goods aimed at making them more expensive than similar locally-produced goods to protect domestic industries from foreign competition.

Consumers

People or collectives who buy products and services for their own consumption.

Producers

Individuals or organizations that create goods or services to satisfy market needs.

  • Acknowledge the function and repercussions of quotas and tariffs on international trading dynamics.
  • Comprehend how government policies influence the domestic and international trade environments.
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PA
Pedro AdameJul 21, 2024
Final Answer :
Answers will vary. Governments favoring protectionism can implement different trade policies, such as tariffs, subsidies, quotas, and antidumping actions. These policies in turn can help domestic firms stay competitive with foreign firms; however, they are not without repercussions.
A tariff is a tax levied on goods as they cross the border of a country, whether coming in or going out. In general, import tariffs are meant to protect domestic production by raising the price of imported goods in order to ease competition with domestic industries. Tariffs produce revenue for the domestic government. Generally, import tariffs lead to increased prices for consumers and easier conditions for domestic manufacturers. In other words, tariffs harm consumers and benefit producers by creating artificial economic inefficiencies. Import tariffs are usually more common than export tariffs.
The section "Government Policies Directed at Trade" on page 127 provides information on tariffs. Students can use this section to make their own interpretation and answer this question.