Eco372International Trade and Finance Speech

This kind of tax is called a tariff and is enacted to protect domestic producers of the same items that can be imported at much lower costs. Answer the following: (10 points)

In modern economic policy of nations and states, the tariffs a tool to tax goods and services being imported. The principal desired outcome for this tool is to create security for the domestic industry from the imported product, which may be cheaper for consumers to purchase. (McEachern, 2015)

One of the major advantages of trading is that it allows producers to concentrate or specialize their work in the type of goods they produce best. When people decide to specialized in a specific profession an become doctors, farmers, teachers, or any other profession within an economy, they will be able to produce goods and offers different services that can be trade for any goods or services they may need. In this same way countries can become specialized in the production of specify products and/or services and trade those with other countries. However, trading and importing products and services from other countries also has its disadvantages. As a result of the different products imported governments impose certain restrictions and limitations to protect the domestic production and market of every country involve in any kind of trading transactions. Governments have imposed taxes on trading transactions adding them to the cost of importation, and have the purpose of restricting and/or limiting the imports of goods and services into a country. These government

3. A tariff is the tax of imports and exports to different countries, some countries may have trade agreements to reduce or completely get rid of

A tariff is simply a tax or duty put on goods and products leaving or entering a country. In relation to John. A Macdonald it was part of the National Policy. The tax was put in place to help the canadian Economy and generate revenue. Before the National Policy, Alexander Mackenzie put a small tariff in place that was for revenue. The tariff was only about 20 % duty. When John A. Macdonald was in his second run as prime minister,he reinstated the tariff in the national policy only a higher percentage. The reason the tariff was put in place was to protect Canadian manufacturers and protect against the American competition.

International trade and finance:

In today’s society it’s important for people owning businesses or investing in products to know that we will always be linked to other economic countries. As an American citizen I am aware that day in and day out we are constantly making deals with other nations for various reasons. We are linked internality due to the goods and services flows or simply trade flows, capital and labor flows or simply resource flows, information and technology flows, and financial flows. International trade is significant to the United States in two regards, one being that the United States is completely dependent on trade for certain commodities and material that cannot be obtained domestically. Another reason is the combined volumes of U.S. imports and exports exceed those of any other single

Understanding the purpose and framework of taxes, assist with the understanding of the Tariff and quotas. Tariff is a tax placed on import goods by the government. Nevertheless, when one thinks about additional dollars added to the retail price of a good or service, it may be discouraging. Especially, since there is an abundance of services and goods desired by consumers- with so many wants, our resources are scarce. Meanwhile, there is a constant debate concerning the effects of tariff that are placed on imports and exports. Economist and scholars believe high taxes on imports and exports can hurt the economy. Indeed, there are advantages and disadvantages concerning the Tariff .

A quota is a limit set on the particular products that countries can import during specified time periods. An example of a quota is how the "Organization of Petroleum Exporting Countries sets a production quota for crude oil in order to "maintain" the price of crude oil in world markets".

A tariff is a tax placed on particular imported or exported goods and services. There several types of tariffs; specific tariffs, ad valorem tariffs, licenses, import quotas, voluntary export restraints and local content requirements. Governments use these tariffs for protecting domestic employment, new businesses against competition,

By way of comparison, the level of world GDP rose eight-fold during the same period. As a consequence, the share of international trade in world GDP has risen from 5.5 per cent in 1950 to 20.5 per cent in 2006.” Many factors have helped contribute to this growth and development of world trade. First and most influential is technological change. This advancement has drastically reduced the high costs of transportation and communication, two very critical elements of globalization. In more recent years, jet engines and containerization have helped contribute to the reduction of the cost of previously extremely costly transportation. Thus, the array and volume of goods traded have increased. The coordination of producing goods has always been a difficult task however a transformation in information technology has made it substantially easier to trade and to coordinate this production all over the world. In return, goods are spread easier and much cheaper.

An instrument in which governments use as a method to intervene in international trade and investment as mentioned earlier are tariffs. A tariff is a form of tax established on foreign goods and services, which are imported. Tariffs are generally used to restrict international trade, as they increase the price of imported goods and services which as a result, makes those commodities more expensive to consumers. Also, a tariff can be exactly like a quota, which will be discussed later, if, permitting the same import volume, the domestic output and prices are identical under the alternative trade policies (Fung, 1989). By restricting trade of imported foreign goods and services through tariffs but increasing the costs, it provides protection to domestic producers against the foreign competitors. As seen from the experience from the Irish case study of a comparison between the industrial sectors of Northern Ireland and the Republic of Ireland to examine the effects of protection on industries specialization and trade, tariffs can play a major part in an industry’s and its surrounding industries’ performance (McAleese, 1977).

Quotas is a trade restriction that limits and regulate the number and value of imported goods in specific period of time. For example strawberries, during the winter season we don’t see as much of them in the market, however if you happen to find some the value of the produce significantly increased. Another NTB is subsidies, the government provides money to new industries to become competitive in the global market. This include depreciation allowance , cash grants , and tax holidays (p.110) to help reduce cost and improve their position. For instance if a company is too small and is unable to to compete int the global market , the government would offer them financial aid for them to get back in business. Currency control is used to limit

Firstly, there is a conflict for the reason of financial loss of worldwide organizations while working the business in a global system. The reason might be poor coordination with subcontracted organizations, paying additional assessment to different nations which expand the items use of worldwide organization and capital danger if items are not devoured by universal buyer. Gilbert (1998) contended that tax assessment has huge impact on held income of organizations. The review of Dowell et al. (2000) examined that occasionally governments drawing in outside venture prompts low quality of items which influence the popularity of organizations and business sector esteem.

Processes of cooperation and integration between countries are very important in the modern world. At the present time, a profound influence and an interrelation between countries is noticeable. The result of these processes in the future should be a fully free transmission of goods, services and subjects of intellectual property, capitals and human resources. At the same time, there is still a big gap in the level of economic development of countries in the world. This imbalance creates a collision between two different policies of world trade. Some countries provide liberalisation of international trade, other countries advocate protectionism to support a domestic market by using barriers and restraints on trade. One manifestation of