I need help with a Economics question. All explanations and answers will be used to help me learn.
Select a developed country that has implemented a tariff, and a developing country that manufactures products that are impacted by that same tariff. The current US and China tariff “war” cannot be used since these are the two largest economies in the world. Investigate the impact of the trade barrier on the developing country’s business sector and quantify the impact, if possible. Would you recommend that the developed country eliminate the tariff? Explain your reasoning.
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production of steel because increased local production in the US could leave South Africa without enough market (Kohnert, 2018). Moreover, trade barriers slow down the economy of countries that are developing, thus discouraging investors. That is, barriers to trade make exportation expensive for developing countries, hence hindering international trade. For example, a study showed that trade barriers harmed the growth of the global market by 16% (Selen, 2020). Therefore, I would recommend that developed nations should remove all tariffs because other countries depend on international trade to grow. It is because tariffs may promote isolationism when it comes to international trade.
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