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Tariff Impact On International Trade

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Abstract:
In this paper we described about trade barriers by discussing the various findings of the relevant studies. It is also discussed here that how trade barriers can affect the trade. The pulp of this paper or study is how much trade barriers are important for the protection of the domestic economy. There are two independent variables that are imports and exports and the dependent variable is trade. The previous papers have shown the impact of trade barriers on trade and we are going to explore and enhance the impact of tariff on trade.
Introduction:
Historical Background of trade:
Our Holy Prophet (PBUH) was the first trader of the world. Barter system was a past mode of the trade. Its means exchange of goods and services in return. …show more content…

When people will earn less and they will pay more for imported goods, due to this less people will have jobs and inflation rate will be high.
Many countries impose tariff on international product because they want to hurt the buyers from buying the goods from any other nation. Therefore the buyers will buy their own country’s product and it will improve the domestic economy. If there is no tariff on the imported goods then the country will import more and export less and this will take the economy into depression. But if the tariff on imported goods will be much high then there will be no trade.
Literature Review:
In this paper there is a case study of china and scope of technical non tariff measures imposed by china. The paper has shown the impact of Chinese non tariff measures on Asian exports. They collected value added and excise taxes on the base of imports and the rates of taxes were 5% to 17%. Augmented gravity model was used to estimate the results. Variable used in study were GDP, real GDP per capita, DST (distance between economic centers of “I” and …show more content…

Domestic firms or industries may decrease their production and it may cause unemployment. The other reason for trade barriers protecting consumers and national security, as if consumers will prefer import of goods the market of domestic goods will be less. It is further discussed the types of trade barriers such as specific tariffs, Ad valorem tariffs, Licenses, Import quotas, voluntary export restraints and local content requirement. Results has shown the highly significant impact of trade barriers on trade. (Abrardi, L, & Cmbini, C,

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