Answer:
May be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs).
Explanation:
A tariff refers to a tax or custom duty that is imposed on the goods that are imported from the foreign countries. It is the restriction on the imported goods to protect the domestic producers of a particular nation from the competition abroad.
The tariff also imposed to enhance the domestic production of the goods and increases the prices of the imports.
Answer:
may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs).
Explanation:
In simple words, A tariff can be defined as a levy between autonomous regions on the imports as well as exports. This is a method of international exchange control, and a strategy that regulates foreign goods to support or protect local industry.
Tariffs offer an impetus to expand demand and substitute local goods with imports. Tariffs are intended to reduce international market pressures and minimize the trade imbalance. Traditionally, they have also been interpreted as a way of defending the embryonic factories and promoting urbanization through import substitution.
