Effects of Tariffs Student’s Name Professor’s Name Course Title Date of Submission Tariffs refer to barriers that are imposed by countries or trading blocs on either the imported goods or the exported products (Blonigen et al. 2013). In many cases tariffs serve to protect the local domestic industries by changing the competitiveness of the particular product within the world market. As such tariffs serve as punitive measures to remedy Beghin J. C. Disdier A. C. & Marette S. (2015). Trade restrictiveness indices in the presence of externalities: An application to non‐tariff measures. Canadian Journal of Economics/Revue Canadienne d'économique 48(4) 1513-1536. Blonigen B. A. Liebman B. H. Pierce J. R. & Wilson W. W. (2013). Are all trade protection policies created equal? Empirical evidence for nonequivalent market power effects of tariffs and quotas. Journal of International Economics 89(2) 369-378. [...]
Select a developed country that has implemented a tariff and a developing country that manufactures products that are affected by that same tariff. Investigate the impact of the trade barrier on the developing country’s business sector; quantify the impact if possible. Would you recommend that the developed country eliminate the tariff?