Tariff can be define as a compulsory levy on

Assessment: WAEC SSCE - Economics - 1997 (Objective) Subject: Economics

Question 1 Report

Tariff can be define as a compulsory levy on
Answer Details
A tariff is a type of tax that a government levies on imports and sometimes exports of goods. It is a form of trade barrier that is intended to protect domestic industries and jobs from foreign competition. When a country imposes a tariff on imported goods, it makes those goods more expensive to purchase in the domestic market, which may lead to a decrease in their demand. This may lead to an increase in demand for domestically produced goods, which may result in increased production and employment in the domestic market. However, it may also lead to retaliatory tariffs from other countries, which can harm international trade and economic growth.

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