Tariff Barriers Introduction
Key Term and Why I am Interested in it
I picked Tariff Barriers as my topic. The reason behind this decision was for what a Tariff Barrier is designed to do. It protects a respective country’s businesses from foreign competition.
Key Term
Tariff Barriers, also known as Import Restraints, limit the amount of goods or products that can be imported into a particular country. They are a form of taxes that are designed to prevent goods from foreign competitors to be circulated within that country. This is to allow an unhindered market for a particular good or service (DuBoff, 1985). Since international trade allows consumers to pick from a variety of vendors, most domestic vendors can become crowded out by foreign competition that provide either better or more affordable versions of the same product. The Government of that particular country benefits with the revenue that the tariff brings in, while simultaneously deterring foreign industries from marketing their goods in that country (Fahey,1931).
Major Article Summary
The Creation of NAFTA, the North American Free Trade agreement is an example of countries, which have removed all tariffs between them in an effort to increase trade amongst them. In the article, The Effect of Tariff and Non-Tariff barriers on U.S. sugar imports, Kruijk discusses the implications of Tariff Barriers to an economy. Using Sugar as an example, the article assesses the prices and demand curve of sugar that was imported from other countries. A steady incline in the price of sugar is documented as a result. Simultaneously whenever this happened the demand for the product has a noticeable decrease (Kruijk,1979). Whenever partnering countries remove trade barriers from amongst themselves, the country that has the weaker economy tends to benefit from the stronger industries in the other countries, partly due to the country’s comparative advantage (Kruijk,1979).
Other Resources Relationship to Major Article
This week’s module focuses on
I picked Tariff Barriers as my topic. The reason behind this decision was for what a Tariff Barrier is designed to do. It protects a respective country’s businesses from foreign competition.
Key Term
Tariff Barriers, also known as Import Restraints, limit the amount of goods or products that can be imported into a particular country. They are a form of taxes that are designed to prevent goods from foreign competitors to be circulated within that country. This is to allow an unhindered market for a particular good or service (DuBoff, 1985). Since international trade allows consumers to pick from a variety of vendors, most domestic vendors can become crowded out by foreign competition that provide either better or more affordable versions of the same product. The Government of that particular country benefits with the revenue that the tariff brings in, while simultaneously deterring foreign industries from marketing their goods in that country (Fahey,1931).
Major Article Summary
The Creation of NAFTA, the North American Free Trade agreement is an example of countries, which have removed all tariffs between them in an effort to increase trade amongst them. In the article, The Effect of Tariff and Non-Tariff barriers on U.S. sugar imports, Kruijk discusses the implications of Tariff Barriers to an economy. Using Sugar as an example, the article assesses the prices and demand curve of sugar that was imported from other countries. A steady incline in the price of sugar is documented as a result. Simultaneously whenever this happened the demand for the product has a noticeable decrease (Kruijk,1979). Whenever partnering countries remove trade barriers from amongst themselves, the country that has the weaker economy tends to benefit from the stronger industries in the other countries, partly due to the country’s comparative advantage (Kruijk,1979).
Other Resources Relationship to Major Article
This week’s module focuses on
References: Fahey, J. (1931). Tariff barriers and business depression. Proceedings of the Academy of Political Science, 14(3), retrieved from http://www.jstor.org/stable/1172703 Daly, M., & Stamnas, S. (2001). Tariff and non-tariff barriers to trade in korea. Journal of Economic Integration, 16(4), retrieved from http://www.jstor.org/stable/23000770 DuBoff, L. (1985). Changing art customs: Removing the tariff barriers. VLA Journal of Law and the Arts, 10(1), 46-47. Retrieved from http://heinonline.org.ezproxy.liberty.edu: 2048/HOL/Page? handle=hein.journals/cjla10&collection=journals&id=49 Milner, C. (2005). Protection by tariff barriers and international transaction costs. Scottish Journal of Political Economics, 52(1), Retrieved from http://heinonline.org.ezproxy.liberty.edu:2048/HOL/Page?handle=hein.journals/cjla10&collection=journals&id=49 Kruijk, H. (1979). The effect of tariff and non-tariff barriers on U.S. sugar imports. Weltwirtschaftliches Archiv, Retrieved from http://www.jstor.org/stable/40438918