Title: Where Does Tariff Money Go? - The Freeman Online
Headings: Where Does Tariff Money Go?
Where Does Tariff Money Go?
The question is, where does tariff money go?
Who Is To Pay Tariffs?
Advantages Of Imposing Tariffs On Imports
Disadvantages Of Imposing Tariffs On Imports
What Are The Various Types Of Tariffs?
Ad valorem Tariffs:
Specific Tariff:
The Different Perspectives On Imposing Tariffs
The Classical Theory
The Developmentalist Theory
The Ecological Theory
The Institutionalist Theory
How Are Tariffs Administered?
Conclusion

Content: The effect of a tariff-induced increase in price is that prices of goods in the exporting country vary with that of the importing country. For these countries to reduce the cost of production when they still have to pay tariffs, there is a tendency to produce goods of lesser quality to reduce cost and maintain a reasonable profit margin. Thus, the imposition of tariffs leads to the production of foods of lesser quality to importing countries. Another effect of imposing tariffs is that it causes a decline in the demand for the commodity. It is a direct result of the increased price that is induced by imposing tariffs. The imposition of high tariffs also causes trade wars between countries. Trade war arises when countries increase tariffs against each other. It is usually done in reaction to the restrictions on trade that have been imposed by another country. Sometimes, where a trade war is not managed correctly, it could lead to a real conflict between these countries. While the imposition of high tariffs stifles foreign competition, the revenue of these international companies are affected and are likely to lay-off some of their workers to stay afloat.