Discussions of policies or practices that facilitate or restrict trade among nations involve
flip sides of the same coin. Measures adopted to increase trade usually entail refutation of
practices that heretofore restricted it. Tariffs, which are taxes imposed on imported goods, are
a case in point. When countries want to limit the importation of certain goods, such as steel or
wheat, they increase the tariffs imposed on the import of these items. That makes it more
expensive for the importing business to purchase raw materials or componentsexpenses that must
be passed on to the customer if the business activity in question ceases to be profitable.
Conversely, countries seeking to increase the levels of trade between them agree to lower
tariffs, or eliminate them completely, with the assurance that certain domestic industries will
benefit, while others may suffer. This is the case with president Donald Trumps recent decision
to impose tariffs on imports of steel and other goods....
Friday, 6 February 2015
What are methods to increase trade between countries and methods to restrict trade between countries?
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