The Pros And Cons Of Tariffs Essay - 1628 Words

Presenting the Pros and Cons of Tariffs An important part of managing the economic status of a nation is to manage the methods in which goods and services are imported and exported into and out of the country. Because of differing resources, labor costs, and government support of industry, fiscal policy sometimes includes placing a tariff on imported goods in an attempt to level the economic playing field. â€Å"Tariff† comes originally from the Arabic word ta’rifah meaning â€Å"to make known.† In a more contemporary setting ‘tariff’ is defined as â€Å"the schedule or system of duties so imposed.†(Dictionary.com, 2015, p. 1) This is often taken to be defined as a â€Å"tax that a national government places on an imported or exported good or service to encourage or discourage trade.†(Fontinelle, 2012, p. 1) In modern economic policy of nations and states, the tariffs a tool to tax goods and services being imported. The principal desired outcome for this tool is to create security for the domestic industry from the imported product, which may be cheaper for consumers to purchase. (McEachern, 2015) Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools. Tariffs come in many formats, a primaryShow MoreRelatedPros And Cons Of Tariffs1127 Words   |  5 Pages Pros and Cons of Tariffs Principles of Macroeconomics Columbia Southern University BBA-2401 Angelo Jones Managing the how goods and services enter or leave this country (import/export) is an important process that allows for us to control the economic status of our nation. Sometimes imposing tariffs on the goods imported balances our labor cost, resources and government supported industry. A tariff by definition is a tax or duty to be paid on a particular class of importsRead MoreEssay about Jabwood International881 Words   |  4 Pageshave its pros and cons. Pros First year sales are 10% of the target market. Sales growth is estimated at 100 % in two years. There are no restrictions on mobility of funds. Capital can be 100% foreign. Processed wood products are exempted from import taxes. Government Stability is at 61 which means it is not likely for the country to go unstable. Saudi- Arabia is in the Middle East and it also an Islamic country which Jabwood international is familiar with that market. Cons Tariffs on lumberRead MoreSolution For Contemporary Economic Issues Essay1371 Words   |  6 Pageseconomic globalization. To master these problems, economists adopted two general types of economic theories. The first theory is protectionism, which is a philosophy to protect local markets from foreign competition by putting barriers, such as high tariffs. The second theory is known as trade liberalization. The clue of this theory is to encourage countries to stimulate international trade by reducing restrictions between countries. Today, adopting trade liberalization theory is more practical strategyRead MoreThe Free Trade Agreement Is An Integral Part Of The President s National Export Initiative Goal987 Words   |  4 PagesThe free trade agreement is a pact between two countries or areas in which they both agree to life most or all tariffs, special fees and taxes, and other barriers to trade between the entities. (White, 2015) The main purpose of the free trade agreement is to a llow faster and more businesses between the two countries which is seen to benefit both of them. The United States has free trade agreements with 20 countries. These include 12 bilateral agreements and 2 multilateral agreements. (United StatesRead MoreDiscuss Pros and Cons for Joining the Trans-Pacific Partnership837 Words   |  3 Pages which can lead to long term prosperity for their citizens. In addition to those benefits, many of the tariffs that are enacted in those foreign countries would either be lowered or eliminated, also helping in the process of working towards long term prosperity. Some of the areas of employment that could see these changes most profoundly are the fish and seafood producers. Lowering the tariffs would enable them to have better access to the fish and seafood market in the foreign countries, which isRead MoreInternational Economic Dimensions Of Nutrition Essay1216 Words   |  5 Pagesthe pros and cons of free trade? Food security is defined as when all people at all times have access to safe nutritious food to maintain a healthy and active life (FAO 2003). Therefore, the importance of food security is to the general welfare of the population as a public health and nutrition benefit. Free trade can be defined as a market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions such as taxes, duties, tariffs, orRead MoreThe North American Free Trade Agreement1711 Words   |  7 PagesThis paper will discuss four components of the North American Free Trade Agreement: Background, events, pros and cons. Upon the research, you will discover four online articles to provide more detail and examples. This research will indicate how it was developed and the reasoning on why it would benefit the nation. Also, it will provide events that occur after the agreement was signed by congress and the recession the countries experience during the early 2000s. There will be a chart locatedRead MorePros and Cons of the Free Trade Agreements706 Words   |  3 PagesWhile I was on the internet I was researching for the pros and cons of The Free Trade Agreements, and this is what I found: It seems to be a split betwe en the democrats and the republicans. Pros Some believe that the Free trade will increase sales and profit for the US business. I still think this is up in the air. I don’t feel the economy is up, but is it better? They also said that the Free trade will create us jobs for the middle class over a long term, but I also know that there are still a lotRead MorePros and Cons of Nafta Essay1568 Words   |  7 PagesPros and cons of NAFTA NAFTA, the North American Free Trade Agreement, has been getting a lot of not so favorable, and sometimes, controversial headlines in recent years. Some critics blame it for the current labor shortages in the United States, due to the fact that most U.S. companies have been and continue to outsource and ship jobs overseas. However, its proponents have been hailing it as a great success in helping lowering national prices on certain manufactured goods and services andRead MoreCentral America Free Trade Agreement1242 Words   |  5 Pagesagreement with lower tariffs, but to create a free trade area. CAFTA has been compared to NAFTA in many similarities in the areas that they encompass. Though it is speculated that CAFTA-DR is the stepping-stone to reaching the FTAA. The FTAA will include such countries as all of the South American and Caribbean nations, as well as, North America and Mexico, also excluding Cuba. (wiki) With reaching this agreement between the countries to lower tariffs on US products it removed tariffs on 80% of US exported