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Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoTariffs can play an important role when a nation decides to industrialize a certain part of their economy. Here is a hypothetical situation.There will always be different points of view internally by economists who are asked to study various aspects that tariffs may play if a nation decides to change their hand crafted auto industry into a mass production, assembly line style auto industry. In this hypothetical situation, a government comes to the conclusion that the nation is importing a majority of its automobiles from nations who through their industrialization methods of producing automobiles, is dominating the auto industry in their country. These imports, aside from causing a balance of payments issue, are also threatening the very existence of the fine hand crafted and costly home auto industry.
Business and government come to the conclusion that the nation can become competitive in auto making, however, the process needs help during the initial phases of industrializing their auto industry.
The help comes in the form of high tariffs on imported cars. This forces consumers to chose to pay higher prices for imports or pay lower prices from the new car industry in their own country. The tariff decision is important because the amount of the tariffs are not written in stone. Economists will debate them, and whether the tariff can really help the home industry depends on the quality of the cars it produces.
This hypothetical case covers one aspect of the tariff and the industrialization scenario. It does not speak about the political problems that tariffs will cause with a friendly trading nation whose exports will be curtailed or the domestic impact of the tariff. With that said the example does show how tariffs and industrialization are important.
Wiki User
∙ 14y agoa tariff is important because it helps the economy.
Wiki User
∙ 11y agoOne of the causes that started the Civil War.
Wiki User
∙ 9y agotariffs were good because then the government would fall
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Why were protective tariffs established?
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To shield America's industries from foreign competition during the late 1800s?
Established protective tarriffs on imports.
What measures did Woodrow Wilson passe while in office?
Established a federal income tax lowered tariffs
What type of agreement was Zollverein?
Zollverein was a custom union that was established in Germany. The agreement was that the tariffs that would be eliminated and this was made in 1866 after the Austro-Prussian War.
What happened to tariffs during McKinleys presidency?
the tariffs increased:]
What is the plural of the word tariff?
The plural form of the noun 'tariff' is tariffs.
Northern and southern Farmer's Alliance had different views on?
protective tariffs - apex
Why did Governor Hayne of The North higher tariffs because tariffs . The South higher tariffs because tariffs South Carolina favor states' rights?
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What was the primary purpose of NAFTA?
NAFTA was established to create better trade opportunities between the United States, Canada and Mexico. The agreement removed certain restriction such as costly tariffs.
Did Democrats want low tariffs?
No, Democrats Wanted High Tariffs, while Republicans wanted High Tariffs
What was Jackson's view on tariffs?
he really enjoyed licking the tariffs
Was the south in favor of tariffs?
No; the South depended on exporting cotton and US tariffs would have invited tariffs in the countries to which they exported.
