Namibia import most of its goods, and to encourage local production it can levy a tariff on imports. Discuss the effects of a tariff on an importing country such as Namibia.

Md Ariful Islam

0 like 0 dislike
1 views
Share with your friends

1 Answers

Md Ariful Islam

Call

Namibia being a developing country and a country dependent mostly on its imported goods, imposing a tariff would have a directly effect on both the consumers and the producers.

When the government opts to levy tariff on imports the cost of the imports will go up thus the goods will get costlier for the consumer and they will have to pay higher prices for the same.

On the other hand when the prices of the imported goods go up the demand for the same will fall thus this will encourage the domestic industry to come up with a competitive price and compete with the foreign firm in the domestic market. This will definitely lead to growth of the domestic industries.

0 like 0 dislike
1 views
Talk Doctor Online in Bissoy App
dishtinguish between substitutes goods and complementary goods. dishtinguish between superior or normal goods,inferior goods.

The difference between substitute and complimentary is:A substitute is something used instead of a particular good or service, eg. for dinner , if you decide to eat beef instead of...

1 Answers 1 views
Three Step Tariff. Determine the Total Tariff. D: P = 400 - Q SD: P = 40 + Q Sw: P = 80 Tariff: P = 40

Determine the SWL. D: P = 400 - Q SD: P = 40 + Q. In equilibrium Qsd = Qd, so: 400 - Q = 40 + Q, 2Q =...

1 Answers 1 views
Distinguish among public goods, private goods, common resources, natural monopoly goods and mixed goods.

A private good is both rival and excludable this means that consumption is rival and consumers can be excluded. For instance a can of pineapples is a private good while...

1 Answers 1 views
Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are A. complementary goods B. substitute goods C. unrelated goods D. normal goods

X and Y are substitute goods because a decrease in price of X means that consumers will demand more of X .Demand for good Y will decrease because consumers will...

1 Answers 1 views
Given that the world supply curve is horizontal at the world price for a given good, can a subsidy on imports raise welfare in the importing country? Explain your answer.

The subsidy on imports can raise the welfare in the importing country when the import meets the needs of many people. The increase in demand will be based on the...

1 Answers 1 views
Explain the effects of tariff on the current account of an importing country.

Tariffs are bad for consumers since they raise the cost of imported goods. Importers must pay a tax in the form of tariffs on the items they are bringing into...

1 Answers 1 views
Suppose a U.S marble maker can import 50% of the total quantity demanded of marbles. This is an example of a(n) ________. A. tariff B. quota C. trade limit D. import tax

B. quota

1 Answers 1 views
If a country helps other country by means of goods, i understand. If a country helps other country by means of money, as the money is not valid in another country. How does the transaction happen?

International payments are always made in global (reserve) currency. Some of the world's currencies are accepted for most international transactions. The most popular are the U.S. dollar, the euro, and...

1 Answers 1 views
if a country imports 20% of their grapes from one country, what are the effects of signing a free trade agreement with that country

After the signing of a free trade agreement with this country, the share of imports of grapes will increase and prices for grapes will decrease.

1 Answers 1 views
Discuss the two main trade remedies that Namibia could use to safeguard its market against imports and can it use the same remedies against imports from South Africa?

The two major barriers to international trade are tariff barriers, or taxes on imported goods; and nontariff barriers. The nontariff barriers to trade include import quotas, embargoes, buy-national regulations, and...

1 Answers 1 views
X