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2007-05-27 06:01:46 · 6 answers · asked by kj_9 1 in Business & Finance Corporations

6 answers

A nation (we will call this nation, nation A) can restrict imports in two specific ways, putting a tarrif on the product to be imported there by increasing the cost of the good to the people of the country who would buy the good from the other nation (we will call them nation B) or buy putting an all out ban on the good (think about how there is a ban on drugs and narcotics). These both have different consiquences to both nations envolved.

With Tariffs Nation A will cause the cost of nation B's goods and services to increase which will cause less of those goods and services to be purchased by the citizens of Nation A. This also can create less compition in Nation A and cause the price the goods and services to increase in Nation A as well. The point of the Tariff in political terms is to do two things, help the producers of the goods in services increase their hold with the citizens of the nation imposing the tariff, and to use the tariff as a bargining tool to get the other nation to negotiate with the imposing nation.

A ban on the other hand really only has one outcome in econimic terms... a black market. This is where a country puts a ban on a good or service and people who really want to have this good or service create an "underground" market for them. Think about how drugs are smuggled into the nation and how expensive they are do to the risk involved by the drug runners. Bans are not necessarly bad, if drugs were made legal in this country it would not necessarily be a good thing. Also think about the ban on lead based paint. Most people would agree that having lead based paint in your home is not a good idea due to lead poising.

Nations do these through acts of their governments. Some are good others not so much.

2007-05-27 06:44:39 · answer #1 · answered by Anonymous · 0 0

Officials in any nation can pass laws to ban or restrict imports from any other nation.

2007-05-29 03:55:12 · answer #2 · answered by jdkilp 7 · 0 0

Raising tariffs will also have the effect of restricting imports.

2007-05-27 06:09:32 · answer #3 · answered by pm 5 · 0 0

you need to be more specific, are you asking how can they ? or why can they,


its simple econmics though, if its not in there best intrest to import somthing, they wont, they just simply put a ban on the imported item and activate more security at the port of entry

2007-05-27 06:06:34 · answer #4 · answered by Anonymous · 0 0

Each nation can do anything.

There was a nation called the United States of America back in the day and they had slaves and they also killed hundreds of thousands of innocent people with two NUCLEAR BOMBS then one day their President decided their money should not be backed by gold anymore.

More recently they decided to borrow money from Russia, China, Mexico, India and other countries and their debt will be $9 Trillion soon.

Here is your tab:

2007-05-27 06:54:29 · answer #5 · answered by Anonymous · 0 3

I don't see how this is still possible in the modern world, times of communism have gone... RESTRICTING something is not appropriate anymore...

2007-05-27 06:13:58 · answer #6 · answered by boy 2 · 0 0

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