Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter 3, Problem 4DCS

a.

Summary Introduction

To discuss: Evaluate each point whether it is valid or not.

Introduction: Tariff refers to duties or taxes paid on import or export of goods or services. It helps to increase revenue for government and to save domestic industries.

b.

Summary Introduction

To discuss: Evaluate each point whether it is valid or not.

c.

Summary Introduction

To discuss: Evaluate each point whether it is valid or not.

d.

Summary Introduction

To discuss: Evaluate each point whether it is valid or not.

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How do you think tariffs affect trade levels? What are the advantages and disadvantages of tariffs?  A tariff is a charge placed on an imported good with the goals of reducing the amount of foreign imports, protecting domestic employment, thwarting competition amongst domestic industries, and raising government revenue. "The imposition of tariffs has long intended to aid American industry extending back for more than 300 years, with mixed results." It is challenging to foresee precisely how a protective tariff will affect trade flows and price levels. It is important to keep in mind that tariffs could affect other industries. U.S. tariffs on tires caused multilateral trade volumes to change and domestic producer price volatility to rise. On the other hand, tariffs on a variety of American exports showed how American producers' capacity to maintain their competitiveness and access to domestic markets could be impacted.…
The General Agreement on Tariffs and Trade (GATT) was a treaty designed to promote free trade by reducing Select one: a. None of the above b. Tariff barriers only c. Non-tariff barriers alone d. Both tariff and non-tariff barriers
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