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Who benefits from a tariff or quota?

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Tariffs and Quotas. Tariffs are taxes imposed on imported goods; they will increase the price of the good in the domestic market. Domestic producers benefit because they receive higher prices. The government benefits by collecting tax revenues. read more

Tariffs and quotas protect specific industries from foreign competition, which can meet strategic goals or political objectives. Whether it's domestic needs or foreign policy goals, trade protectionism can be tempting for policymakers. read more

Quotas Quotas are numerical limits imposed on imported goods. Consumers are harmed by quotas, while domestic and foreign producers benefit by receiving higher prices. In the graph below, the market initially clears at P 0, Q 0. read more

TARIFFS Benefits 1. Local government through increased revenues. 2. Domestic business due to the fact that it would allow them to lower the cost of their products compared to their foreign counterparts. Loses 1. read more

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