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A protective tariff on manufactured goods would cause the prices of those goods to go to what?
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∙ 13y ago
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A protective tariff on manufactured goods would cause the prices of those goods to go lower or higher?
generally, the price would go higher.
Does a protective tarrif on manufactured goods cause the prices of those goods to go lower or higher?
This depends entirely on the location of manufactures. For example; if the United States decides that it wishes for the American Automobile business to become more prevalent within its borders, it will impose a Protective Tariff on foreign Automobiles, making it more expensive for competition to export to the U.S. Therefore, if a foreign Automobile Manufacturer decides to continue exporting its cars to the U.S, it will need to raise the prices of those cars, to make up for the cost of export (the Protective Tax). However as the prices of foreign goods go up, the price of locally manufactured goods will go down, as there will be more commerce directed at them. If two relatively similar cars, one locally manufactured and cheaper, and one imported and more expensive, the majority of people will purchase the former, thus allowing the local manufacturer to lower its prices because of the amount of business it conducts. Hope that's helpful.
What did investors fear would happen beause of the Smoot-Hawley Tariff Act?
a decline in prices-apex
Why domestic tariff on steel increases the price of steel in the US and in the rest of the world?
Because a tariff is a cost for the importer (a sum of money it pays to the state for being allowed to enter the merchandise in the country), and it must be transfered to the consumer. Therefore the price goes up.The prices in the rest of the world are influenced because the US is one of the big producers of steel and the relative ineficiency of its plants is materialized in high prices, which in turn influence the international market.Interestingly, in many economic models, a tariff and a quota cause the exact same effect of decreasing supply (and thus decreasing quantity and raising the price). The only difference is that a quota has a larger deadweight loss than a tariff (because a tariff generates government revenues). So it is theoretically possible to structure a tariff to ensure that only a certain amount of a good is imported into a country, which is the goal of a quota. I describe this to lead to the overall point: tariffs cause prices to rise because they cause an artificial shortage in the market. It has very little to do with costs being transferred to the consumer. One could also suggest that tariffs protect less efficient producers (by imposing an extra cost on the more efficient out-of-state producers) and thus raise prices, but that effect would be much less pronounced.
How did the Hawley Smoot Tariff help make the Depression worse?
The Hawley-Smoot Tariff raised prices on foreign imports, making it impossible for them to compete in American markets. This in turn led foreign countries to retaliate by enacting their own tariffs. While Hawley-Smoot didn't cause the Depression, this sort of protectionism was not at all helpful; rather than protecting American products, it simply led to trade wars, and harmed the economy by making it harder to engage in international business. Thus, many historians believe it made a bad situation worse.
Why did the tariff of 1816 cause disagreement between the northern states and the southern states?
Because they their internet
Why are lions considered protective guards in China?
cause they are strong
Who opposed Alexander Hamilton's tariff policy on part because they believed thqt hogh tariffs would cause problems?
Thomas Jefferson and his followers opposed Alexander Hamilton's tariff policy.
Do you agree or disagree with high prices traditionally cause expansion in an industry eventually bringing an end to high prices and manufacturers prosperity?
I agree because high prices traditionally cause an exppansion and industry and this brings an ending to the prices on manufactors and the prices of gasoline
Thomas Jefferson thought that the tariff policy would cause problems for who?
It gave the government too much power.
What was a chief cause of the rising prices of the 1970's?
The formation of OPEC and the increase in the price of oil was a chief cause of the rising prices of the 1970's
How did the south view tarrifs?
The main grievance of the Southern states was tariffs. Although slavery was a factor at the outset of the Civil War, it was not the sole or even primary cause. The tariff of 1828, called the Tariff of Abominations in the South, was the worst exploitation
