Thinking in English 321. What are Tariffs? (English Vocabulary Lesson)
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Dec 2, 2024 Explore the world of tariffs and their impact on international trade. Discover how these taxes on imports affect consumers and industries alike, often leading to price hikes. Learn about different types of tariffs, their historical significance, and the complexities of their modern use. Delve into real-world examples showcasing both the protective benefits and drawbacks of tariff policies, sparking a lively debate on the balance between tariffs and free trade as economic strategies.
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Tariff Definition and Types
- Tariffs are taxes on goods crossing borders, usually during import.
- They come in two types: ad valorem (percentage-based) and specific (fixed fee).
Purpose of Tariffs
- Historically, tariffs funded governments.
- Now, they protect domestic industries by increasing import prices, promoting local consumption.
Tariff Example
- A cheaper Korean car might become less attractive if the US adds a 25% tariff.
- This encourages consumers to purchase similar, American-made cars.