Explain how a tariff on foreign shoe imports would benefit show manufactureers in the U.S.?

Question

In order to protect american imdustries from lower priced foreign competition the government frequently puts tariffs on imported goods. The effect of a tariff is to discourage people from purchasing less expensive foreign-made goods since after paying the tariff which has been added on to thier price, the foreign-made goods are no longer as great a bargain.

Answer 1

Yeah you basically answered it yourself.

The tarriff would increase prices of imported shoes, thereby making U.S. shoe manufacturer's products (that they keep in the U.S.) relatively cheaper, which would increase their sales and profit.

However, if U.S. shoemakers also export their shoes to some of the same countries that the U.S. imports shoes from, then the foreign country is likely to retaliate by levying a tarriff on U.S. exports, which would thereby damage the competitiveness of U.S. shoes in that foreign nation. This would either cause the net effect of the U.S. tarriff to be neither good nor bad for the shoemakers, or to actually damage the shoemakers, if they lose enough foreign sales. It would depend on the reletive market share in each country, and the extent to which the shoemakers relied on the domestic as opposed to the foreign marketplace for their profits.

Answer 2

A tariff on foreign made shoes would have the effect of increasing the price of the foreign shoes delivered to the US. It would benefit US manufactures because their products would become more competitive with the foreign made shoes. Subsequently they would make more shoes, employ more Americans and make profits which would stay in the USA. The potential rub is that the shoes cost more for the American consumer. Herein lies the quandary. What situation benefits America the most. I am not referring to the American worker of the American business. I am referring to America--which translates to all of us and our posterity. Today, America is being bombarded with less expensive foreign goods and services. Walmart has built itself into the worlds largest retailer using lower priced foreign goods. Many other American companies have elected to do the same thing. The net result is that foreign countries now have close to 3 trillion dollars with which they finance our national debt, buy our profitable companies and further subsidize their own protected industries. Perhaps we have become too dependent on foreigners to satisfy the needs of Americans. The only true test comes down to "What is good for America and our posterity".

Answer 3

As a shopper you will pay the regularly occurring cost of trainers plus the tariff for distant places shoes. you're the two already paying that for family members shoes, or with opposition costs fastened at an inflated fee, they'll start up charging you extra. it particularly is all inflation to the financial gadget. If different industries devour shoes, their costs would be larger, and those businesses would possibly no longer have the skill to compete. shoes is a troublesome occasion, say trend fashions and activities communities have larger expenses. a stable occasion is the sugar industry. Sugar risk-free practices in the US capacity intense sugar expenses. candy makers have left the rustic because of the fact they'd produce extra fee-effective someplace else with decrease sugar expenses.

Answer 4

Its screws over the comsumer having to pay higher prices for shoes, but it does provide profits for protected domestic producers, and politcans dont have to worry about layoffs a little goverment help to shelter it from lower price foreign competition to eat up profit margins. Its good for the producer , and workers making shoes traiffs, but bad for the comsumer that has to pay higher prices for the shoes simple micro 101 there question.

Answer 5

That's correct. But why legislate to protect ineffective shoe manufacturers at the expense of consumers!!!??? Is this what they meant when they said "democracy?"

Answer 6

it would drive the price of imported shoes up making domestic made shoes more competitive price wise

Answer 7

I think you answered it yourself, besides if the gov CAN tax it, they WILL