Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Ask your questions and receive precise answers from experienced professionals across different disciplines. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

For each hypothetical scenario, indicate whether the tariff described is more likely a protective tariff or a revenue tariff.

a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural re
sources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.
b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.

Sagot :

jepessoa

Answer:

a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural resources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.

  • protective tariff since it is designed to protect domestic industries from competition of out of state producers. It is designed to increase the price of imported goods.  

b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.

  • revenue tariff since its main purpose is to increase government revenue, not to protect domestic industries.
dubeyshailja64

The first scenario describes protective tariff whereas the second scenario explains revenue tariff.

What is protective and revenue tariff?

In international trade, protective tariffs are applied on the imported goods to protect and prevent the domestic industries from competition.

In scenario a, a tariff of $1,500 and additional of 6% was charged on imported goods to protect the domestic producers. Therefore the first scenario describes protective tariff.

The revenue tariff on the other hand refers to a tariff that is designed with an intention to increase revenues.

The scenario b describes a tariff that was applied to reach the target revenue of $100 million. Therefore it is a revenue tariff.

Learn more about protective and revenue tariff here:

brainly.com/question/26525730

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.