Part of a business owner’s costs when it comes to pricing, competition, manufacturing, and distribution are tariffs. Tariffs can be used by a country to increase its revenues or protect its own domestic industries. When expanding internationally, a business owner may run across countries that have tariff and nontariff distortions to trade.
Discuss the following issues regarding tariffs:
How do countries use tariffs to increase revenues or protect industries?
How do they affect exports?
Who benefits from tariffs?
Producers or consumers?
Small, developing countries or large, developed countries?
What other costs are involved in importing and exporting?
When are tariffs good, and when are they bad? Why?
How does a business owner find out what tariffs exist in individual countries, and what percentage of the cost of imports and exports is from tariffs?
What government agencies in the United States provide this information?
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