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• Consumption effect. When a tariff is imposed on a certain imported good, the consumption of that good in the importing country reduces and this reduces the consumer’s satisfaction.
• Revenue effect. A freely imported good generates zero revenue. When a tariff is imposed there is increase in government receipts hence collection of revenue.
• Price effect. When a tariff is imposed on an imported commodity, the price of the commodity increases in the importing country.
• Protective effect. Protective effect shows how domestic industries are protected from foreign competition by imposing an importing duty. A tariff reduces the imports but increases the production of commodities domestically thus protecting the domestic industries from external competition.
• Redistribution effects. Redistribution effect is as a result of the producer receiving a higher price for their commodity after imposing the tariff.
• Terms of trade effect. A tariff improves the terms of trade of the country that imposes the tariff. By receiving commodities at a cheap price because the exporting country is forced to pay a part of the tariff duty.
• Income effect. This refers to the effect of a tariff on national income of a country that imposes it. It reduces the demand of imported commodities by reducing imports and it increases the demand of home produced commodities on the assumption that there is no retaliation by the other country. It increases the value of export surplus which increases the inflow of income from foreign sector.
• Balance of payment effect. A tariff has a favorable balance of payment effect by reducing imports in the tariff imposing country and it also reduces export in the other country. It reduces the country’s international expenditure and it brings about stability in balance of payment.
skilled writter answered the question on April 26, 2018 at 16:56
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Investment Planning Proposal
Imagine you are meeting with friends to discuss the importance of investments as part of a retirement plan.
Read the following summaries of the financial situation and goals of two of your friends:
Kathy
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Jackson
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Address the following in your proposal:
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Provide two to three resources you would offer to your friend to continue learning more about investments and retirement planning and discuss how these can help.
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If the manufacturer replaces all components that fail before the guaranteed minimum life time of 600 hours, what percentage of the components have to be replaced?
(3 marks)
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b)Company A...(Solved)
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C = 2q2 + 80q + 400
Company A can restrict the weekly supply of its product to company B, but cannot raise the unit price above Sh. 200. The two companies are considering whether to merge together into a single company.
Required:
i)At what weekly sales would company A maximize its profits? What would be the profit or loss of company B if company A were able to supply a profit maximizing quantity of its product each week?
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Date posted: April 2, 2018. Answers (1)