Tariffs Assignment Example | Topics and Well Written Essays - 750 words

Tariffs - Assignment ExampleNevertheless, in some countries, duty still counts much as source of government revenue.The government can also employ responsibility as a measure to protect domestic industries. Sometimes global competition can ravish the domestic industries which have not realized full economy of scale. Industrialized countries may have attention that can produce products at a low costs partly due to government subsidization. When those products are imported to a given country, they may bring unhealthy competition and make local patience collapse. In this regard, government may put trade barriers in terms of tariff duty to reject importation of certain products and allow the growth of the local exertion. As a matter of fact, a slopped examination of the tariff employ by different countries has disclosed that, to a greater extent, the competitiveness of the industry is linked to the tariff imposed on the same products (WTO pp 1).When the states want to strike a b alance amongst allowing imports and at the same time giving a chance for the local industries to grow, they use tariff quotas. Tariffs quotas consummation on the principle of assigning no or low duty to a given chroma of goods imported and then charging higher rates to any imported goods above that limit. The World Trade nerve bans the idea of quantitative restrictions as a way of protecting local industries but it allows the system to be employed for this purpose.Lastly, punitive tariff can be used to remedy trade imbalance that results from measures used by former(a) countries. For instance, Antidumping Agreement empowers states to use antidumping duties to rectify cases of proven dumping injurious situations. Equally, the Subsidies Agreement provides for other states to impose countervailing duties if an exporting country has subsidized its manufacturer (summer and Smith pp 4). Overall, tariff is an