What is tarif?
As the world begins to globalize, many countries are activating globalization by trading with other countries in the form of exports and imports. To further regulate trade activities, each country must have its own trade policy, such as tariff barriers and non-tariff barriers.
Tariffs are charges or toll that is imposed on foreign goods. The objectives are either to raise the prices of imported products to current domestic prices or increase government revenue. Tariffs may also apply to exported goods. Some countries impose taxes on grain exports to prevent domestic shortages. Tariffs are one of the most widespread and old-fashioned forms of trade protection, often referred to as trade barriers. Some of the types of tariffs are as follows:
- Protective Tariff
- Prohibitive Tariff
- Specific Tariff
- Revenue Tariff
- Ad Valorem
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