Discussion Thread: Global Environment and Trade Theory reply # 2

Jonathan Arp
MondaySep 5 at 2:54pm
Tariffs

Jonathan Arp

Professor Pinkney International Business BUSI-303-B04

Liberty University

September 8, 2022

Definition of Key Term

A tariff is a tax that a government applies to many different types of goods that are imported in from another country.

Summary

The article “The impact of US Tariffs against China on US imports: Evidence for trade diversion?” is an article written in Economic Inquiry that discusses the ramifications of tariffs that the US is placing on imported goods from China due to an escalating trade dispute between the two countries. With China having higher tariffs on the goods they export to the US, the overall price of the product rises which can lead consumers which to often export from other countries and in some cases, they simply buy domestic. The article discusses the economic effects and fallout to the different countries affected from the tariffs.

Discussion

In the book “International Business with Biblical Worldview”, Chapter Three is titled “Economic, Legal, Political and Risk Factors”. This chapter discusses how business is affected by governments and nongovernmental organizations and how things such as laws, policies, and sanctions, play a role international trade. The key term I selected was tariffs. This term directly relates to chapter three, as governmental tariffs play a large role on imported goods and international trade. Tariffs are often applied to not only “equal the playing field” for domestic manufacturers, but they can also be imposed as punitive measures against a country. For instance, when the United States is having a conflict with another country, they can create higher tariffs to hurt that nation’s economy as it can cause a reduction to the number of exports that country ships. Likewise, the United States could reduce tariffs on imports from another country to help promote peace or solve a conflict. Whether we realize it or not, every person is affected by tariffs. Nearly everyone in the world has products or goods that were manufactured in another country. To have those products imported from another country meant there were tariffs imposed on them which ultimately affected the price of the product to the consumer.

References

Cigna, S., Meinen, P., Schulte, P., & Steinhoff, N. (2022). The impact of US tariffs against china on US imports: Evidence for trade diversion? Economic Inquiry, 60(1), 162-173. https://doi.org/10.1111/ecin.13043

The article discusses the effects of US tariffs placed on imports from China.

Furceri, Hannan, S. A., Ostry, J. D., & Rose, A. K. (2022). The Macroeconomy After Tariffs. The World Bank Economic Review., 36(2), 361–381. https://doi.org/10.1093/wber/lhab016

This article discusses the macroeconomic effects from the rise and fall of different tariffs.

Irwin. (2019). TARIFF INCIDENCE. National Tax Journal., 72(3), 599–616. https://doi.org/10.17310/ntj.2019.3.05

This article examines a study to determine who tariffs affect more, the domestic consumers or the exporters on which the tariffs are imposed.

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