Tariff  

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Kunstformen der Natur (1904) by Ernst Haeckel
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Kunstformen der Natur (1904) by Ernst Haeckel

A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade. It is a policy that taxes foreign products to encourage domestic industry. It is used to equalize the trade balance. The tariff is historically used to protect infant industries and to allow import substitution industrialization.

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See also

Types

Trade dynamics

Trade liberalisation




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