0
Tarriffs serve two purposes - to raise money, as a form of taxation, and to protect domestic industry, by putting extra charges on imported goods, making them more expensive and less attractive to buyers.
In the early days of the American government, before income taxes in 1916, most of the revenue used to run the government came from the tarriffs on imported goods.
In the 1980s, when the US Dept of Commerce was helping American businesses move their production facilities to foreign countries, they reassured concerned citizens that the loss of jobs would be more than made up for by the tarriffs that would be charged for the goods as they were imported into the US.
Of course, as soon as those businesses were moved offshore, Trade Agreements were signed, including the Uraguay Round of the WTO, that removed the tarriffs, but by then, the dirty deeds were done.
Wiki User
∙ 12y ago
Wiki User
∙ 14y agoThey use tariffs to regulate the flow of products in or out of a country so the market is not overfluctuated and also to pay for the countries needs
Add your answer:
Earn +20 pts
Protectionism and the US?
That is,protected U.S business by restricting products that come into the U.S other countries.
Protectionism is bad how and why?
Protectionism is a great idea if you are a politician and you want votes now. Protectionism means that an industry is being paid by the government to keep making a profit on goods that are being made at too high a price. In other words the business can't compete. So rather then forcing the business to close down naturally importers are charged for importing goods, this pushes up the price of the goods the extra money that is taken in by the government is then given to the inefficient local manufacturer so that he can make a product at a loss and still make money. Protectionism is bad because it protects inefficient businesses. So it is important that the U.S. practice free trade only with countries that also practice free trade.
Who get hurt from protectionism?
No one... It's PROTECTionism! Idiot!
What are pros and cons of protectionism?
Protectionism is bad mmkay.
Why do countries engage in protectionism?
Countries engage in protectionism to protect domestic industries from foreign competition, to safeguard national security interests, to reduce dependence on imports, and to create jobs within their own borders. Protectionist measures can include tariffs, quotas, subsidies, and other trade barriers.
What is the difference between Free trade and protectionism?
Free trade is when a country specializes in one or two areas of goods or service and allows a trade with other country or countries that specializes in different area while protectionism is when a country decides to restrict to its domestic production and stop trading with other countries.
What is Neo Protectionism?
Neo-protectionism is a challenge to some other neons out there
What is Neo-Protectionism?
Neo-protectionism is a challenge to some other neons out there
What is the government's standpoint on trade and protectionism?
government's standpoint on trade and protectionism is that he allows free trade
How does trade protectionism work?
Trade protectionism involves the use of measures like tariffs, quotas, and subsidies to protect domestic industries from foreign competition. These measures are intended to limit imports and boost domestic production by making foreign goods more expensive or less competitive. However, trade protectionism can also lead to trade wars, higher prices for consumers, and reduced economic efficiency.
What is S.A government standpoint on trade and protectionism?
government's standpoint on trade and protectionism is that he allows free trade
What is the SA government standpoint on trade and protectionism?
government's standpoint on trade and protectionism is that he allows free trade
