Seatwork in International Business and Trade

1) DEFINE TARIFF.
- Tariff is a tax imposed on the goods and service coming from different countries. It is a
political tool that have been used throughout the years to control the amount of imports that
flow into a country and to determine which nations will be granted the most favorable trading
conditions.
2) WHAT IS QUOTA.
- Quota is the restrictions that have imposed by the government to the amount or value
of goods that a country imports or exports for a given period.
3) WHAT ARE ADVANTAGES AND DISADVANTAGES OF TARIFF.
Advantages

 Source of government revenue

 Opening point for negotiations between two countries
 Businesses in the home country have a better chance of competing
 Encouraging domestic production growth
Disadvantages

 Imported goods and services become more expensive

 May cause other countries to impose tariffs in response, affecting exporters
 Trigger retaliation from partner countries
4) WHAT ARE PRIMARY FUNCTIONS OF TARIFF.

 To serves as a source of revenue

 To protect domestic industries
 To remedy trade distortions
5) WHAT ARE BENEFITS OF TARIFF.

 Produce revenue on goods and services brought into the country

 Serve as an opening point for negotiations between two countries
 Support a nation’s political goals, and help the country stabilize or regulate its own
industries
 Can make a market predictable