Macroeconomics

Tax imposed by a nation on an imported good

designed to produce income for federal government

designed to shield domestic producers from the competition with foreign producers

A limit imposed by a nation on the quantity (or total value) of goods that may be imported during some period of time

• -licensing requirements that is unreasonable or unnecessary bureaucratic red tap
• -voluntarily increasing tariffs

• Positive
• 1. decline in imports
• 2. tariff revenue
• 3. increase production for domestic import

• 1. Decline in exports b/c foreign countries increase tariffs as well
• 2. Decline in consumption
• Higher cost through lost economies of scale
• 3. Decreased variety of good

• WTO
• GATT (General Agreement on Tariffs and Trade)