‘The United States introducing tariffs on import from China and other countries will make the people of the United States better off. The Australian government should do the same and ban imports and protect Australian jobs from overseas competition’. Drawing on relevant economic theory, explain why this statement is correct or incorrect.

Q: Why would a country want to erect trade barriers such as tariffs or quotas? to expand their markets…

A: Significance of trade barriers- The major reasons for erecting trade barriers by governments is to…

Q: The North American Free Trade Agreement (NAFTA) has developed a) b) c) d) a decrease in trade among…

A: The United States, Canada, and Mexico joined together to form a trading bloc in North America under…

Q: The two primary reasons to adopt measures to restrict trade are that   a. they help keep real wages…

A: International trade is the process of exchange of goods and services between different countries.…

Q: What do you mean by import tariff and import quota? Take an example and discuss the difference…

A: International trade enables countries to exchange commodities and services at their own pace, much…

Q: Make the case in favor of international trade based on comparative advantage. Who are the winners…

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session.…

Q: Why would an importing country use a tariff rather than a quota?

A: Tariff is a tax that is imposed on the goods that are produced outside the country and sold…

Q: The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers…

A: Trade bloc helps to create free trade for people but this trade might or might not improve the…

Q: Depict on graph and briefly explain economic consequences of export tariff: for domestic exporters;…

A: A tariff on goods exported from a country is known as an export tariff. Tariffs are used by…

Q: Your roommate Hansen argues that American producers cannot compete with foreign producers because…

A: Free Trade refers to the unrestricted exchange of goods and services between countries, without the…

Q: Consider a small open economy country that produces cars. The world price of cars is less than the…

A: An economy engages in international trade on the basis of the principle of comparative advantage. A…

Q: Now find the free trade equilibrium, assuming no transportation costs or tariffs, by setting P = P*…

A: The answer of only (d) is given here. Free trade, in classical theory, is known as the best way to…

Q: is a policy that involves extensive use of trade barriers to protect domestic industries from import…

A: Trade barriers are government-imposed policies and legislation that restrict international trade by…

Q: What are the advantages of trade? Explain how trade impacts U.S. consumers, U.S. producers,…

A: As economies emerged, goods and services were produced that required machinery and labour. With…

Protective Tariffs

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges which a country charged on imported goods to protect its domestic market. It also protects countries Industrialists in their Production. So, that their markets remain intact and do not get dumped by outside supply.