Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Economic Implications of Tariffs - Essay Example

Comments (0) Cite this document
Tariffs have adverse effects on an economy. However, governments continue imposing them on investors who import commodities from foreign nations (Gregory 2000 p 16)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Economic Implications of Tariffs
Read TextPreview

Extract of sample "Economic Implications of Tariffs"

Economic Implications of Tariffs Tariffs are government taxes that are obligatorily levied for imported products. They are part of the government revenue sources. The amount of tariff charged on goods depends on its value at the entry of the destination country. Tariffs have adverse effects on an economy. However, governments continue imposing them on investors who import commodities from foreign nations (Gregory 2000 p 16).
Governments impose tariffs for several reasons which include; protection of the emerging as well as aging and incompetent local firms from unhealthy foreign competition, to enhance sustainability of local companies through prevention of dumping effect from foreign companies which may offer their products locally at an extremely low price that leads to losses by domestic firms (Mansfield and Yohe 23).
There have been a number of efforts to reduce tariff barriers between countries which have been supported through various organizations such as the WTO and Word Bank, which view tariffs as having a double impact; on the economy imposing the tariffs as well the economy on which the tariffs have been imposed (Geoffrey and Reny 2000 p 66). Tariff barriers slow economic growth. The local producers operate without competition leading to a rise in prices of their commodities, hence a decrease in the rate of consumption locally.
The negative impacts of tariffs on the economy are usually less visible compared to the projected advantages. Many governments therefore tend to focus more on protecting the local producers through imposing tariffs with little considerations of the hidden disadvantages that the practice poses to the economy, as well as the benefits that would be derived if the tariffs were to be abolished. Further research is important to establish how economic growth can be enhanced through abolishment of tariffs.
1. Geoffrey J. A. and Reny P. J. Advanced Microeconomic Theory. Addison Wesley Paperback, 2000
2. Gregory M. N. Principles of Microeconomics. South-Western Pub, 2000
3. Mansfield E. and Yohe W. G. Microeconomics: Theory and Applications, W.W Norton & Company, 2003 Read More
Cite this document
  • APA
  • MLA
(“Economic Implications of Tariffs Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Economic Implications of Tariffs Essay Example | Topics and Well Written Essays - 250 words. Retrieved from
(Economic Implications of Tariffs Essay Example | Topics and Well Written Essays - 250 Words)
Economic Implications of Tariffs Essay Example | Topics and Well Written Essays - 250 Words.
“Economic Implications of Tariffs Essay Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic Implications of Tariffs

International trade- tariffs

...?INTERNATIONAL TRADE -TARIFFS Introduction A tax imposed on goods crossing the national border of a country is called customs duty. A schedule of such taxes on goods and services are called tariff. The existence of customs duty or tariffs can be found for hundreds of years. In those days main purpose of the tariff was to generate extra income for the government from traders. Tariff was levied from ports, markets, streets or even bridges. Tariff extracted on imports at the boundaries of the country has existed from the 17th century (Organization for Economic Co-operation and Development, pp-336). Such tariffs levied on the import of good are called the import tariff. Another kind of tariff which is not very common is called the export...
7 Pages(1750 words)Research Paper

Tariffs and Non-Tariffs Barriers

...? Tariffs and Non-Tariffs Barriers Tariff and Non-Tariff Barriers Business involves the exchange of goods andservices. The exchange process can take place within a nation (local) or across nations (international). International trade takes place because of the fact that no nation can produce everything that its citizen needs and whatever is produced may be too much for the same country. There must be specialization in terms of goods and services among nations. This means that goods and services are to cross borders every time, from one nation to another. International trade that involves export and imports must be controlled. If proper controlled are not enforced on the same, there will be drastic effects on the country receiving...
4 Pages(1000 words)Research Paper

Economic Implications of IPhone5

...? Economic implication of Iphone5 The launch of Iphone5 has led to some economic implications, majorly, within the UnitedStates. It is argued that the new Iphone will lead to a growth in the economy and Gross Domestic Product (GDP). This paper seeks to look into the economic implications of Iphone5 in depth. Economic implication of Iphone5 Introduction Iphone5 was launched in October 2012; this phone is a superior Smartphone, which precedes the earlier version, Iphone4. The Iphone5 is a fourth generation model which promises fast access in the usage of the internet; that is, streaming of videos (Worstall, 2012). It was desired that, with the launch of Iphone5, an estimated 3 billion dollars would be channelled into the United States...
5 Pages(1250 words)Research Paper

US Steel Tariffs

...Order No: 187868 Topic US Steel Tariffs Prepared by Dr. Zulfiquar Ahmed ID: 10131 01-11-2007 Order No: 187868 Topic: US steel tariffs Questions: 1. Critically evaluate the reasons put forward by the USA government as to why it imposed tariffs on steel imports in 2002 Can Protectionist measures ever be justified on economic grounds The USA adopted safeguard measures for declining revenues and rising losses on imports of certain steel products on 5 March 2002, in the form of additional tariffs ranging from 8, 13, 15 and up to 30% for a 3-year period starting on 20 March 2002. Over half the steel mills have filed for bankruptcy. In 2001, US Steel lost $62 per every domestically produced ton. US Steel, the largest American producer, now...
9 Pages(2250 words)Essay

Tariffs and Quotas

... Teacher 20 November 2007 Similarities and Differences between Tariffs and Quotas Introduction The tariff and the quota are two major aspects of the modern economy and can be found in virtually every country in the world. A wide variety of tariffs have been imposed on many different goods and on many different trading routes for hundreds of years as a way for nations to make an income. The quota has been utilized possibly for an even longer time that the tariff so that nations, cities and any type of organized society might be able to easily create an economic budget. These two economic factors are closely related in how they benefit a nation, however their success in this field comes from two different foundations: the tariff has to do...
13 Pages(3250 words)Essay

The Economic Implications of Tariffs

... on investors who import commodities from foreign nations (Gregory 2000 p 16). This essay is a critique of the economic implications of tariffs. It highlights the major reasons why governments impose tariffs on imported goods, which include; protection of the emerging as well as aging and incompetent local firms from unhealthy foreign competition, to enhance sustainability of local companies through prevention of dumping effect from foreign companies which may offer their products locally at an extremely low price that leads to losses by domestic firms (Mansfield and Yohe 23). The essay also presents the negative views of tariffs in regard to promoting trade and economic growth, which have been supported by various organizations...
6 Pages(1500 words)Coursework

Economic Implications of Proposed Regulations

... of important findings and academic theories that bear on the research topic. Chapter 6 presents the conclusions arrived at in the course of analysis, and Chapter 7 provides the reflections on the significance and implications of the conclusions thus formulated. 1.7 Chapter Summary Chapter 1 lays the foundation for an understanding of the research objectives and the context in which the research is being taken. The signification of intention is hereafter fleshed out in form of theory, data and findings, and analysis, in order to provide a solution to the objective of determining the economic impacts of the proposed regulations contained in the Basel Committee Consultative Documents. The analysis should provide useful insights into any...
34 Pages(8500 words)Essay

Implications of Economic crisis on Greece economic

... and entrepreneurship: policy and strategy perspectives, Elgar, Cheltenham [u.a.]. Parker, B 2005. Introduction to globalization and business relationships and responsibilities, SAGE, London. Collier, P., & Dollar, D 2002. Globalization, growth, and poverty building an inclusive world economy. World Bank, Washington, DC. Bozyk, P 2006. Globalization and the transformation of foreign economic policy, Ashgate, Aldershot, England. Wells, G. J., Shuey, R., & Kiely, R. (2001). Globalization, Novinka Books, Huntington, N.Y. Rao, C. P 2001. Globalization and its managerial implications, Quorum Books, Westport, Conn. [u.a.]....
10 Pages(2500 words)Essay

Implications of Mobile Communication on Society

Lifestyle has changed and the mobile phone is gradually becoming a part of the culture of modern societies (Hulme & Peters).
Voice transmission is no longer the only way that mobile phones are used. It is a multi-purpose device. Mobile phone networks have become a new platform through which data, information and transactions are exchanged. It serves as an alarm clock, an address book, an entertainment device through games, and to a text message.
At the end of 2003, there were 1.35 billion mobile subscribers worldwide compared to 1.2 billion fixed line users (Shaping the Future Mobile Information Society). It has undoubtedly changed the lives of the people and the biggest factor which induces the purchase of mobile ph...
6 Pages(1500 words)Essay

The Implications of Excess Capacity in the Jewellery Market

High conglomerates have the capacity to project themselves in key locus points attracting customers and promote their Jewellery designs through advertisements to acquire the customer interest at the expected level achieving brand loyalty.
The Supply factor outpaces the demand for jewellery leading to reduction of prices, minimizing the ultimate corporate profit by a small percentage and increase in job cuts as a measure of sustainability.
Traditional small jewellery and watch operators suffer a major setback in business because of the increasing competition from luxury goods and high fashion conglomerates. There are many instances where traditional jewellery has lost its importance and the demand for the same is fading b...
8 Pages(2000 words)Case Study

Quotas and Tariffs

... market restrictions lead to a nation’s economic decline (Adams, 189). Tariffs also affect the economy of the country imposing the tariff. The tariff costs have been found in most cases to be more than the expected benefits (Adams, 189). Tariffs benefit the domestic producers as they experience less competition in their domestics market (Adams, 189). The reduced competition results to increase in prices. The domestic producers’ sales also increase in this matter. The increase in product prices and production, motivate the domestic producers to employ more workers which result to an increased consumer spending (Adams, 190). In addition, tariffs on the imposing country increase the government revenue which is a benefit to its economy (Adams...
8 Pages(2000 words)Research Paper

Senegal and Its Implications on Tourism

The country has a rich natural and cultural wealth, which forms the basis for tourist attraction. The main religions in the country are Muslim which forms the largest percent, Christian, and traditional religion (Binns, 2002). The big population of Senegal is found in rural areas, where the western-central region is densely populated. In the cities, there is a mixture of Senegalese, Europeans, and Lebanese, but Senegalese forms the largest population. The national language used in Senegal is French and is commonly used by educated people (Binns, 2002).

Researches show that Senegal was inhabited in ancient times. Islam occupied the land as early as the 11th century thus making many Senegalese to be Muslims. The French So...
7 Pages(1750 words)Assignment

Bernard Madoff : A Scapegoat of the Economic Crisis

Darwin was condemned and treated with contempt by the Church for proposing the theory of evolution that linked all living matter in the earth, including humans. In the case of Bertrand Russell, he was imprisoned as a conscientious objector, for expressing his opposition to British participation in the First World War. These are typical examples of people being wrongfully punished when they were guilty of no crime or fraud or misdoing. It would be highly improper to associate Bernard Madoff with the aforementioned luminaries, for he was truly guilty of carrying out the biggest financial fraud in modern history. At the same time, it would be simplistic to classify him as a victim of the contemporary judicial system. The truth, in fa...
6 Pages(1500 words)Assignment

Economic Models: The Free Market and The State Owned System

The free market concept is mainly a theoretical concept as every country, even capitalist ones place some restrictions on the ownership and exchange of commodities (Free market economy). Therefore, the term free-market economy primarily means a system where the buyers and sellers are solely responsible for the choices they make. It gives the buyers and sellers the power to do business without being afraid of any regulations and intervention by the state. Hence, a free market gives the absolute power to prices to determine the allocation and distribution of goods and services (Free Market Economy). The pricing mechanism is in turn, driven by the forces of demand and supply of goods and services. Demand and supply of...
9 Pages(2250 words)Case Study

Economic Analysis on BMW Cars in the US Car Industry

Mini and the 1-series rapidly grew at a much higher rate through 2008. Since the early days of the new millennium, BMW has been one of the first automakers to utilize flexible factories in which more than one vehicle model could be produced at the same time. This enabled the company to meet shifts in market demand more effectively than BMW’s competitors could. BMW challenges to retain its market position in the international market for luxury cars. Many automakers, such as Hyundai with its Genesis sedan or Nissan's Infiniti brand are increasingly successful in realizing higher margins earned on luxury vehicles. BMW is rated behind luxury brands such as Lexus, Porsche, Mercedes, and Infiniti for these reasons

1. Th...
7 Pages(1750 words)Case Study

Multiculturalism: Socio-economic Impacts on Modern States

This paper tends to argue that multicultural policies have promoted social segregation and economic insecurity in modern states. As the most relevant example, it will also evaluate how multicultural policies have evolved to be the most recent threat to the nationality and cohesion of Australia and the United Kingdom.

To begin with, many of the policies enacted on citizenship and immigration have brought about incessant controversy in Australia. In addition, the exceeding emphasis put on the multicultural policy has given rather unfavorable outcomes to both Australia and the UK. Policies that are intended to ensure equal representation and opportunities often create frustration and disappointment among certain interest g...
6 Pages(1500 words)Case Study

Globalization and World Economic Forum at Davos 2010

...Globalization and World Economic Forum at Davos Forces Driving Globalization Globalization has resulted in enhanced interdependencies among thenations of unprecedented scale. This augmented interdependence has caused the dismantling of trade barriers and liberalization of markets. The forces of globalization have impacted the nations, the firms and the individuals alike with the prerequisite of liberalization of trade (Awuah, 2009). The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and the academia. Some markets are highly globalized, while some are not. The scale of market...
7 Pages(1750 words)Coursework

The 1846 Invasion into Mexico by the U. S.: The Political and Economic Forces that Brought about the Invasion

Some of the territories led to a war with Mexico from which the United States emerged victorious, expanding its territories and decisively establishing its dominance in North America.

President Andrew Jackson led an example of an administration that set the stage for the way in which James Polk would lead. In 1817, as a still yet military leader, Jackson led the United States into the first of three conflicts with the Seminole Indians from which the acquisition of Florida from Spain would be negotiated and finalized. The situation with Spain was tenuous and should have been dealt with in a diplomatic and cautious manner, but in 1817 President Monroe wrote a letter to General Jackson stating that “Great interests...
8 Pages(2000 words)Article

Economic and Social Impact of Globalization

Global corporations are heightening their awareness of the nature of their business relationships with diverse governments considered of primary importance to manage factors influencing their performance. From among the elements that global organizations closely and continuously evaluate, the social and economic impacts are considered of significant importance. As the components and diverse perspectives of globalization affect both the host organizations and those nations they do business with, this research aims to proffer significant social and economic issues that impact global strategies.

The concept of globalization encompasses theories beyond the traditional view that global corporations merely do business abroad....
7 Pages(1750 words)Coursework

Occupy Wall Street - Moral & Economic Implications

This movement was founded with the intention of bringing to light some of the issues, which face the modern-day human beings (Walsh, 2011). These are majorly economic conditions, which are exhibited in a society, which is largely capitalistic in nature (Boxer, 2011). It is perceived that the Occupy Wall Street Movement is one, which is of North American descent. However, this is not the case. This movement is one, which has gained popularity to an extent that its presence is now felt in close to 82 countries in the world (Townsend, et al , 2011).
In the recent past, the income inequality has been seen to increase. This is majorly due to the experiences associated with stagnated economies and the unequal distribution of wealth....
6 Pages(1500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic Implications of Tariffs for FREE!

Contact Us