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Why do countries place tariffs on imported goods from other countries?
Wiki User
∙ 6y ago
They use import tariffs so people are more likely to purchase domestic products since the tariff increases the price on imported goods. Putting a quota on a good creates a shortage, which causes the price of the good to increase and makes th eimported goods less attractive for buyers. This encourages people to buy domestic products.
Hope this helps!
Wiki User
∙ 13y ago
Andrew Lee
Countries place tariffs on imported goods mainly to inflate the price of those imported goods, prompting more people to buy locally produced-goods. For example, let's say a facility in the United States builds a product. A German facility builds a similar product that is the same price and is shipped to the United States. If you are an American, there will be a tariff placed on the German product that inflates the price by some amount. Because the German product is now more expensive, there is a higher chance you will purchase the American product instead. That's why we have tariffs, so people are encouraged to buy local products.
Let's use the United States as an example again. Let's say Ford wants to sell Americans their new Ford Fusion sedan. Volkswagen comes along and wants to sell Americans their Volkswagen Jetta sedan as well. The Jetta will be subject to being tariffed, so Americans will be encouraged to buy American cars.
Speaking about cars, you might be asking, "But wait! Why is it that you can get a new Nissan Versa in the U.S. for under $20,000 and not a Ford/Chevy/Dodge, etc.?" This is way beyond my knowledge and probably beyond the scope of your question, but I believe because some car companies build their own factories on American soil, they exploit a loophole in this system and their cars are not tariffed since they are made in America.
Wiki User
∙ 14y agotariffs are imposed to keep control on imports.
Anonymous
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What was one result of high US tariffs on imported goods?
One effect of high American tariffs caused foreign trade to almost stop. This had other countries angry with the US, which caused them to stop buying US goods and they raised their tariffs, which had a effect on the American economy.
What are the two types of tariffs?
special duty ad velorem duty compound duty
Importing manufacturing goods form the northern states and from other countries made the southern states do what?
Refuse to pay the tariffs - Nullification of 1828.
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The exported goods in Colonial South Carolina are rice, silkworms, cotton, olives and capers. Imported goods include clothing, silver, books, sugar and weapons.
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When goods are imported for export to other countris, it is known as entreport trade
What government actions would violate the principles behind GATT and the WTO?
increasing tariffs on imported goods
What is money colonists paid for goods purchased from other countries?
The colonists were forced to pay tariffs on many of their goods which were imported from other countries. This drove up the price of the items and hurt the colonies financially.
What are the benefits of using tariffs over taxes to generate revenue for the government?
There are pluses and minuses in using tariffs for revenue to operate the government. Firstly, tariffs would not be enough to cover the cost of running a government in most cases. Secondly, if Country A places tariffs on goods being imported into their country, then all other Countries will also place such tariffs on goods imported into their Countries from Country A. These costs will of course be passed on to the purchasers of these imported goods inside all the Countries so the costs will still be passed on the people as they buy goods. One good outcome is it will make Country A's goods produced in Country A more competitive for the buyers within Country A. But it will also make their exported goods more costly in other Countries when they try to sell them there. And around and around we go.
Not importing goods from other countries or not using imported goods?
nonimportation
Why do you think England taxed goods imported from or exported toother countries?
why do you think England taxed goods imported from or exported to other countries
What is import liberalization?
Reducing or eliminating tariffs, quotas, regulations, taxes and other restrictions on imported goods.
What was one result of high US tariffs on imported goods?
One effect of high American tariffs caused foreign trade to almost stop. This had other countries angry with the US, which caused them to stop buying US goods and they raised their tariffs, which had a effect on the American economy.
How does the Chinese government raise money?
The Chinese government raises money by levying taxes. It also raised money by charging tariffs on imported goods and selling arms and weapons to other countries.
What do you call goods bought from another country?
exportsAdded; Goods sold TO other countries would be EXPORTS. Goods FROM other countries sold here would be imports.
In Ancient Egypt goods was rarely found in Egypt and was imported from other countries?
timber
Evidence to show the decline of the secondary sector?
This secondary sector has declined because many goods are imported from many different countries. Overseas countries making goods and then they imported to UK and many other countries. That's why nowadays you can not see as much factories as before. Most goods what we are using or wearing are imported from countries such as China, India etc.
What are the Most common Goods imported to India from other countries any 3 items?
armaan
