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Marysya12 [62]
3 years ago
13

What is the impact of an increase of tariffs on imported goods for domestic producer?

History
1 answer:
Alenkasestr [34]3 years ago
5 0
<h2>Tariffs are the duties and/or taxes that the government imposes on imported goods.  </h2>

Explanation:

  • Tariffs are fixed by the government as the “percentage of the declared value” of the imported good.
  • Tariffs on imported goods increase the overall buying price of the imported product which makes it difficult for the consumer to buy.
  • When the same type of product is available in the domestic market then the consumer can opt for the domestic product.
  • Thus imported goods tariff aids in sales of domestic products and is a great boon for the domestic producer.  
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