Question

1. Explain 7 arguments in favor of imposing a tariff.  Name, explain how they work, and what their effect on US trade would be.

Answer 1

Tariff is a tax which is imposed by the government on the imported goods and services from other countries. If there is no tariffs on goods and services than the supplier will import more goods and services from other countries which in turn effects the domestic producers of our country.

If the domestic producers are impacted than the business expansion won't take place and workers will be laid which increases unemployment in the country. Even if will lead to currency depreciation. So tariffs always good for the Economy of the country internally.

It will encourage the domestic producers to produce more and which inturn increase jobs , business investment and development, appreciation of our country currency if there is more exports of goods and services.

Due to tariff other countries will also try to impose tariffs on similar goods exported from our country. There will be small cold war situation between both the countries. Sometimes exports will get effected and even imports as the other countries will raise prices on import goods of our country.