Question

Think about one advantage and one disadvantage each, of tariffs.

Answer 1

Advantages

__________

Tariffs mainly benefit the importing countries, as they are the ones setting the policy and receiving the money. The primary benefit is that tariffs produce revenue on goods and services brought into the country. Tariffs can also serve as an opening point for negotiations between two countries.

Disadvantages

____________

while existing research has mostly documented negative consequences of the tariff increases on the broad economy–including higher prices, lower consumption, reduced business investment, and drops in the valuations of affected firms–some might view these effects as an acceptable cost for achieving the policy aim.

Explanation:

Hope this helps !!!

Answer 2

Explanation:

Advantage/ Disadvantage of Tariffs and Regulation

Advantage of tariffs

For some governments, particularly in the developing world, tariffs provide a significant source of government revenues.

Every country in the world, including the United States, maintains high tariffs on at least a handful of products for which domestic producers are thought to be vulnerable to foreign competition. This so-called tariff protection is typically imposed early in an industry’s life or at moments of weakness or decline, when the threat from more efficient foreign producers is thought to be particularly severe. Once imposed, tariff protection is very difficult to remove, because the enterprises and workers who benefit from it work hard to keep it in place.

Governments use import restrictions to protect domestic health or safety. A government sometimes bans all imports of a particular good when it has reason to believe it could harm public safety or health. For example, in March 2001, the United States prohibited all European imports of livestock to protect U.S. livestock herds from foot and mouth disease, which had afflicted large numbers of animals in Europe.

Governments also restrict imports and exports for political reasons. This kind of governmental restriction on trade is called a sanction.Countries wishing to punish or influence the behavior of another country for human rights violations or for an act of aggression, for example, will sometimes restrict imports from “misbehaving” country. In times of war, adversaries will often prohibit all imports from each other, a measure known as an embargo.

Disadvantage of Tariffs:

One of the cornerstones of macroeconomics is that individuals, businesses and governments will avoid a tax. When American consumers choose to buy a lower-priced American product, foreign producers become disadvantaged, ultimately leading to less trade with the US. Foreign producers are forced to reduce their prices to compete with similar American products. They may choose not to trade as much with the US and import their products to other countries where there are no tariffs. A reduction in trade causes producers to make less of their product which could mean workers losing jobs in the producing country.