PRESENTED BY SHRUTHI.D
Introduction:
International Trade policies deals with the policies of the national governments relating to exports of various goods and services in various countries Trade policies also aim at protecting the domestic industry from the foreign competition . Guard against dumping Promote indigenous research and development Conserve foreign exchange resources of the country
TARIFF
The word Tariff is Arabic in origin ,and derived from the Arabic ta'rif "to notify or announce that fees need to be paid The word comes from the Italian word tariffa "list of prices, book of rates, tariff is a tax or set of duties imposed on goods involved in international trade IN INDIA Tariff Commission Ministry of Commerce & Industry Government of India
Types of Tariffs:
On the basis of Purpose:
Revenue Tariff:
To provide state with the revenue. A "revenue tariff" is a set of rates designed primarily to raise money for the government. A tariff on coffee imports, for example (by a country that does not grow coffee) raises a steady flow of revenue.
Protective Tariff:
To maintain and encourage those branches of home industry protected by the duties. A "protective tariff" is intended to artificially inflate prices of imports and "protect" domestic industries from foreign competition. For example, a 15% tax on agri commodity that importers formerly sold for $100 and now sell for $150. and domestic people can sell it at 100
Compound Duty When a commodity is subjected to both advalorem and specific duty
Tariff Barriers tend to Weaken: 1. Balance-of-payments positions 2. Supply-and-demand patterns 3. International relations (they can start trade wars)
Tariff Barriers tend to Restrict: 1. Manufacturer supply sources 2. Choices available to consumers 3. Competition
CONCLUSION
TARIFFS are mainly concerned with protecting domestic country and decrease exports To eliminate these tariffs trade blocks are formed