Foreign Trade contd I

Commerce SSS1 Second Term

WEEK  8

Foreign Trade contd I

Performance Objectives

The student should be able to:

    1. Mention the reason for the imposition of the tariff.

    2. Explain tools for foreign trade.

    3. List necessary documents for foreign trade.

Content

Tariffs or Restrictions to Trade

Tariffs are taxes or duties imposed on imports and exports by the government of a country. The idea behind tariffs is to restrict the volume of trade or improve the international terms of trade.

Reasons for the imposition of tariffs or restriction of trade

The reasons why countries impose tariff restrictions on foreign trade include the following

1. To protect infant industries: Tariffs are imposed to protect infant industries…