Chapter 12 – page 346 – questions 1 and 2
1- Generally speaking, what factors will determine the U.S. tariff rate on your tents?
Generally speaking, the average tariff rates are mostly less than 20 percent in most states, although they are frequently relatively a bit higher for agricultural merchandises. In most of the countries, regular tariffs are less than 10 percent and often less than 5 percent. Moreover, the less-developed countries preserve higher tariff obstacles, but many countries that have freshly joined the WTO which have reduced their tariffs significantly to gain entry (Schaffer, Agusti, & Dhooge, 2015). Countries also appliance quotas, import licenses, unpaid export restraints, export taxes, transfer subsidies, government gaining policies, domestic satisfied rules, and much more. In totaling, there are a change of domestic guidelines that, for large economies at least, can and do have an influence on trade flows. Moreover, the other issues which affect the tariff are their regulations, restrictions, or disablements to trade, distressing both imports and exports, would be arrested using any of the average tariff actions (Schaffer, Agusti, & Dhooge, 2015). However, these nontariff obstacles can have a much superior effect on trade flows than tariffs themselves.
2- To import the tent at the lowest rate, what class and kind of tent should it be? What should be its“principal use”?
This lower rate of tariffs is referred to as protection, or protectionism. Because tariffs decrease the cost of importing products from abroad but not from domestic firms, they have the effect of defensive the domestic firms that compete with imported products (Schaffer, Agusti, & Dhooge, 2015). These domestic firms are usually called as import competitors.