Tariffs can give a nation a competitive advantage in the areas that tariffs are applied?
Answer:
Listen to the two guys above. It is good to see there are a few people who still understand basic economics.
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No, they can't. Tariffs impact the buyers of the item; they do not penalize the producers, as the costs of the taxes are merely passed through. The foreign producer thus becomes a tax agent for the government.
It's another way the government taxes its citizens, while kowtowing to a selected group of its local workers, to trick them into having their neighbors pay higher taxes to support their uncompetitive jobs, thus prolonging the problem and keeping workers in dead industries -- ultimately hurting them even more.
aerocentral got it right.
All tariffs do is make foreign producers less competitive in the domestic market ... at the expense of consumers.
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