2 years ago

In two or three sentences give two disadvantages of a tariff

1 answer:

7 0

A tariff refers to a tax that is levied on an imported good and which makes the imported good to be more expensive than similar domestic goods. The disadvantages of tariff include the following:
1. Tariff discourages competition in the market, by favoring domestic goods, this leads to reduction in products' quality.
2. Tariff raises the prices of imported goods which leads to decrease in consumer surplus.

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