Tariffs
Tariffs
The Tariff Concept
? Tariff: A tax (duty) levied on a product when it crosses national boundaries
? Import tariff ? Export tariff (not common)
? Tariffs may be imposed for protection or revenue
? Protective tariff (protect domestic industry from competition)
? Revenue tariff
? Decreasing tariff revenue trend for industrial nations ? Percentage of government revenue derived from tariffs
Tariffs ? Big Deal or Not?
Higher income, industrialized countries do not rely on tariffs as a substantial source of government revenues.
Types of Tariffs
? Specific tariff
? Fixed amount of money per physical unit of the imported product
? Ad valorem (of value) tariff
? Fixed percentage of the value of the imported product
? Compound tariff
? Combination of specific and ad valorem tariffs
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