What are types of trade barriers? Who gains and who loses from a protective tariff?© BrainMass Inc. brainmass.com October 10, 2019, 5:31 am ad1c9bdddf
The tariff is the first barrier. It is simply a tax (only) on imported goods, making imported goods more expensive than local goods.
Who benefits from tariffs? The beneficiaries here are local producers who now compete with more expensive imports, hence boosting their own sales. They get to expand their operations and create more jobs.
Tariffs encourage local producers to enter into the market. For some economists, the consumers lose, because they are forced to buy more expensive domestic goods when they could have bought cheaper imports. For them, a tariff is really a ...
This solution outlines three different types of trade barriers and states who may benefit from such barriers.