A number of countries levy tariffs on international products in order to support native production, while other countries prefer to keep the free market allowing customers to buy imported goods for accessible prices. Although, as a consumer, I gravitate to those who support the idea of free tariffs, both views will be elaborated on here.
On the one hand, there are a few key reasons why imposing customs is of particular importance for the local economy. Firstly, the fact of import duties protects domestic production and results in measurably reduces unemployment in a short run. Local manufacturing is stimulated to produce more to satisfy the domestic demand. Secondly, import duties ensure that more revenue arrives to the budget of the country. For instance, a government can invest this money in the country’s transport network, its education system and its healthcare.
On the other hand, some governments believe that import fees sap the economic growth, and by waiving the tariffs, they stimulate purchasing capacity of the citizens. The produce coming from abroad is available at affordable prices. Therefore, buyers are given the opportunity to have a variety of choices and opt to buy the best option. Another significant factor of customs withdrawal is that existence of cheaper foreign output motivates domestic businesses to produce better quality things, which, in turn, would maintain genuine competition and laying the foundation for the market economy. For example, if Swiss chocolates and sweets are present on the shelves of Ukrainian supermarkets, local producers are obliged to make their chocolate if not worse than that from Switzerland, but even better.
In summary, both sides of the arguments staying in favour or against import fees have their advantages. However, having analyzed the two camps, I am of the opinion that economy should be developed by other means rather than high tariffs which are doubtlessly paid by an ordinary consumer. If the products were at the lesser cost, purchasing power would be increasing, as well as household incomes.
A number of
countries
levy
tariffs
on international products in order to support native production, while other
countries
prefer to
keep
the free market allowing customers to
buy
imported
goods
for accessible prices. Although, as a consumer, I gravitate to those who support the
idea
of free
tariffs
, both views will
be elaborated
on here.
On the one hand, there are a few key reasons why imposing customs is of particular importance for the local economy.
Firstly
, the fact of
import
duties protects domestic production and results in
measurably
reduces
unemployment in a short run. Local manufacturing
is stimulated
to produce more to satisfy the domestic demand.
Secondly
,
import
duties ensure that more revenue arrives to the budget of the
country
.
For instance
, a
government
can invest this money in the
country’s
transport network, its education system and its healthcare.
On the other hand
,
some
governments
believe that
import
fees sap the economic growth, and by waiving the
tariffs
, they stimulate purchasing capacity of the citizens. The produce coming from abroad is available at affordable prices.
Therefore
, buyers are
given
the opportunity to have a variety of choices and opt to
buy
the best option. Another significant factor of customs withdrawal is that existence of cheaper foreign output motivates domestic businesses to produce better quality things, which, in turn, would maintain genuine competition and laying the foundation for the market economy.
For example
, if Swiss chocolates and sweets are present on the shelves of Ukrainian supermarkets, local producers
are obliged
to
make
their chocolate if not worse than that from Switzerland,
but
even better.
In summary, both sides of the arguments staying in
favour
or against
import
fees have their advantages.
However
, having analyzed the two camps, I am of the opinion that economy should
be developed
by other means
rather
than high
tariffs
which are
doubtlessly
paid by an ordinary consumer. If the products were at the lesser cost, purchasing power would be increasing,
as well
as household incomes.