Tariff Barriers

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Publicat de: Paula B.
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Taxes levied on imports also sometime on exports

Who gains?

Governments

Local producers (at least on the short run)

Employees of the protected industries keep their jobs

Who loses?

Consumers who pay higher prices

The economy which remains inefficient

Employees of the protected industries who don’t develop new skills

Following the object :

1. import tariffs

2. export tariffs

Following the collecting procedure:

1. ad valorem tariffs

2. specific tariffs

3. mixt or alternative tariffs

Following the setting procedure :

1. autonomus tariffs

2. standard tariffs

3. autonomo-conventional tariffs

4. assimilated tariffs

Following the aim :

1. protectionist – prohibitive – tariffs

2. preferential duties

3. retaliatory tariffs:

Antidumping duties

Countervailing duties

Definition:

fixed monetary tax per physical unit of the good imported

Benefit: – ease of collection

Cost:

tariff’s effectiveness in protecting domestic industry falls as price of imported good rises

Why? because tariff becomes a smaller and smaller portion of the total cost of the good as its price rises.

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