Tariffs and Non-Tariff Barriers to Trade

In: Business and Management

Submitted By cdrckard
Words 887
Pages 4
International Marketing 4530
15 September 2015
Tariffs and Non-Tariff Barriers to Trade When considering trade on a global scale, one must consider certain trade restrictions imposed on imported goods, or tariffs. Global trade has many benefits such as supplying consumers with a wide assortment of goods, allowing domestic firms to trade internationally, and cutting costs of goods. However, not everyone completely benefits from global trade due to tariff and non-tariff barriers. Monetary restrictions to trade come in the form of tariffs, or a tax on imported goods; non-monetary restrictions on trade are called non-tariff barriers. Tariffs have been used by governments throughout history to control the flow of trade and determine which countries are best to engage in trade. These tools use are used by countries for several different reasons to protect the nation’s economy. Tariffs can be put into place by a nation’s government for virtually any reason seeming fit; however, there are a few main reasons that are reoccurring. A main reason for tariffs is to protect newly established, infant industries from being overpowered by foreign competitors. A high tariff on the importing of a certain goods that are also being domestically produced will decrease foreign competition in that market. Another main reason some governments levy a tariff is to protect the workforce in that country. Some argue that unemployment will rise when cheap, foreign goods are imported to replace domestically produced goods (Hanson 70). Although usage of tariffs has declined in the past few years, they are still used for political, industrial, and for security purposes by most countries in some form. The type of tariffs that a government can impose on imports vary depending on the nature of the tariff in regard to protecting the nation from foreign threat. For the most part, there are…...

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