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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