Phase 2 – Costs- DQ

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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?
  • Should the United States use tariffs? 
    • Why or why not?

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