GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Most tariffs have
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only revenue effects
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only protective effects
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both protective and revenue effects
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neither protective or revenue effects
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Explanation:
Detailed explanation-1: -(a) The Effect of Tariffs The most basic effect that an import tariff has is to raise domestic prices in the country imposing the tariff.
Detailed explanation-2: -A tariff is a tax levied on an imported good with the intent to limit the volume of foreign imports, protect domestic employment, reduce competition among domestic industries, and increase government revenue.
Detailed explanation-3: -Tariff effects on the exporting country’s government. There is no effect on the exporting country’s government revenue as a result of the importer’s tariff. Tariff effects on the exporting country. The aggregate welfare effect for the country is found by summing the gains and losses to consumers and producers.
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