What are the arguments for imposing tariffs in international trade?


The followings are the arguments for imposing tariffs in international trade
•        National security arguments - Some countries want to be self-sufficient such that if war and trade embargo come then there shouldn’t be problem
•        Infant industry argument - Most young countries can’t compete with developed countries products hence impose tariffs to protect the entry of foreign goods.
•        Employment argument - Government should impose import restrictions; this will result to increase domestic production, which in turn will increase domestic employment.
•        Diversification for economic stability - Some countries depend on very few exports. Such countries could argue that they need to diversify to more products. To attain such objective they impose tariff to allow some local industries to develop new products instead of depending on one product only.
•        Bargaining argument - If a country has some tariff, then it has something to offer during negotiation e.g. when the cooperation aiming at reducing tariffs is under discussion a country might offer to reduce tariff.

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