BUSINESS CHAPTER 3 HW - Because comparative advantage,...

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Marco Emadzadeh Business 101 Chapter 3 Critical Thinking 4. The regulation of tariffs is one way to allow domestic producers to survive and grow. Protective tariffs increase prices on international products and boost domestic employment by ensuring safety from competing international industries. Revenue tariffs are designed to raise government money, especially in developing nations. Although each tariff has some negative aspects, they also progress each country domestically. Internationally, tariffs cause barriers and complications among trade. In 1948, the creation of GATT utilized countries into one similar organization that facilitated negotiations and trade restrictions. In 1995, the WTO was created. The World Trade Organization assumed the task of mediating trade disputes among nations. No nation can produce all of its needs, therefore trade must always exist.
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Unformatted text preview: Because comparative advantage, nations must issue tariffs to keep their domestic companies alive and in competition with the rest of the world. Developing Workplace Skills 4. Yes, I do agree with Representative I. M. Wright. Tariffs are needed to provide revenues to protect our young industries. Protective tariffs are meant to save jobs for domestic workers and to keep infant industries from closing down because of foreign competition. Indirectly, tariffs can cause a patriotic upheaval also. Since international products will be more expensive than domestic products, citizens may decide to pay less and keep domestic businesses alive rather than feed international companies. Since tariffs save domestic companies, many people will be able to keep their jobs instead of losing them to international companies. Tariffs can also cause a favorable balance of trade, or trade surplus....
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This note was uploaded on 04/27/2008 for the course BUS 101 taught by Professor Jeffers during the Spring '08 term at WPUNJ.

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