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Tariffs and Subsidies Assignment Answers

Avail Online Help for Completing Your Tariffs and Subsidies Homework

If you are a student of economics, it is common to have assignments and homework on topics like tariff and subsidies. If required, we can assist you with tariffs and subsidies homework answers. At myhomeworkhelp.com, we wish to provide the necessary academic assistance to you so that you can complete your homework and assignments properly and on time. Not only that, we are dedicated to help you understand the topics better.

Defining Tariff

Tariff can be defined as a tax that is imposed on imported services and goods. They are utilized for restricting trades, since they are responsible for increasing the price of imported services and goods, which makes it more expensive for the consumers. Imposing of special tariff is done in the form of a fixed fee, depending on the kind of item. On the other hand, imposing of ad valorem tariff is done depending on the value of the concerned item.

Tariffs generate extra revenue for the domestic producers and governments at the expense of foreign producers and consumers. They are amongst the many tools available for shaping trade policy. Understanding this basic definition of tariff is a must for your tariffs and subsidies assignment answers. If you don’t understand it, you will have trouble with most of your assignments on the topic.

Defining Subsidies

Subsidy may be defined as a transfer of money to an entity from the government. It results in the fall of price of the product that is subsidised. Government usually incorporates subsidy for bolstering the society welfare. Although it is generally extended from the government, subsidy can be termed for any kind of support, from NGOs for instance.

Reasons for tariff implementation

  • For protection of domestic jobs: If the foreign goods purchased by consumers is cheaper, there is a risk of people working for producing the domestic good losing their job.
  • Protection of Infant industries: In case a country wishes to develop an industry of its own for production of a certain good, it shall use tariffs for making the foreign good more expensive to the customers.
  • Retaliation: If a country doesn’t follow the trade rules agreed upon previously with another country, the other country may impose tariffs on the goods of its trading partner.
  • Consumer protection: If a foreign good is deemed harmful, the government might impose tariff for discouraging customers from purchasing the good.

Types of subsidies

You may be required to write about the different types of subsidies in your tariffs and subsidies assignment answers. They include:

  • Production subsidy
  • Export subsidy
  • Consumption subsidy
  • Tax subsidy
  • Employment subsidy
  • Environment externalities
  • Transport subsidy

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