BUSA 3000 Study Guide - Quiz Guide: Ad Valorem Tax

• School: GSU
• Department: Business Administration--Busa
• Course: BUSA 3000
• Professor: Maria Luiza Pinho

Document Summary

Import tariffs are a principal instrument of trade intervention. In a short essay, briefly describe the five main types of import tariffs and provide one real example. There are five main types: ad valorem, specific, revenue, protective, and prohibitive tariff is a tax that is collected on goods. In addition, import tariffs is a tax collected on imported goods. The purpose of a tariff is for the government to raise price for imported product to stop increasing of imported products. There are total of five main types, prohibitive, protective, specific, revenue, ad valorem. Prohibitive is a tariff where they set the price high enough that would make it difficult for to sell. This way they would decrease the import of this certain product. For example, eu want to reduce sugar consumption so they place a tariff of 106% tariff on any sugar goods from other countries. Protective is a tariff that protect domestic product field against foreign competition.