Pros and Cons of Tariffs Name Institution Pros and Cons of Tariffs Tariffs are imposed on imports by the government in order to control the stability of a country’s economy. This is true for a case where the manufacturers within a country are facing stiff competition from imported products. The imported goods could be posing a threat to the domestic industries in a case where they are cheaper than the domestically produced products thereby making them more preferable by the domestic consumers. This is what causes the government to intervene and impose tariffs to regulate and discourage imports. They are not necessarily banned from being imported but a tariff is imposed where the tariff could be a ten percent increase in tax on the amount of the imported product. While the imposition of tariffs causes a decrease in the number of imports this usually has both advantages and disadvantages consumer in a country’s market. Individual customer choice is still ranked among the most beneficial elements that consumers in any given market enjoy from international trade. When tariffs are imposed this reduces the number of choices that could have been available to the consumer (Principles of macroeconomics 2014). This is because higher tariffs lead to increased prices and even some products not penetrating into some countries altogether. In the event that the country does not produce a similar product to the one that has tariff imposed the consumers might be denied the opportunity to enjoy the product. This becomes a huge hindrance on the part of the consumers. Reference Mankiw G. (2005). Macroeconomics (7th ed.). New York: Worth Publishers. Retrieved from irfanlal.yolasite.com Gregory Mankiw Macroeconomics%2C 7th Edition 2009.pdf Principles of macroeconomics. (2014). Houston. Retrieved from learn.saylor.org Rittenberg L. & Tregarthen T. (2011). Principles of macroeconomics. mit.edu. Retrieved from https://ocw.mit.edu/ans7870/14/14.01SC/MIT14_01SCF11_rttext.pdf [...]
Unit Essay Write a 5 page essay, using a minimum of 3 academic references from the CSU online library and proper APA formatting on the following topic: PROS AND CONS OF TARIFFS. All sources used, including the textbook listed below, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style. McEachern, W. A. (2015). ECON: Macro Principles of Macroeconomics (4th ed.). Stamford, CT: Cengage Learning.