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Student videos

Import Tariffs - Basic Analysis Diagram

  • Levels: A Level, IB
  • Exam boards: AQA, Edexcel, OCR, IB, Eduqas, WJEC

This short revision video takes students through the basic analysis diagram showing the effects of an import tariff introduced into a domestic market.

Import Tariffs - Basic Analysis Diagram
  • Import tariffs are a form of protectionism
  • Tariffs aim to protect domestic industries from overseas competition by increasing the relative price of imports, thereby causing a fall in import demand.
  • Thus a higher proportion of domestic demand will be met from domestic suppliers
  • Tariffs can also generate tax revenues for the governments who levy tariffs. Indeed, for many lower and middle-income countries, import tariffs are an important source of tax revenues
  • A reduction in the quantity of and total spending on imports as a result of the import tariff may also improve a nation’s trade balance

Contextual background: Average import tariffs set by the EU

EU tariff by product type (%)

  • Animal products 15.7
  • Dairy products 35.4
  • Fruit, vegetables and plants 10.5
  • Coffee, tea 6.1
  • Cereals and preparations 12.8
  • Sugars and confectionery 23.6
  • Beverages and tobacco 19.6
  • Wood, paper etc 0.9
  • Textiles 6.5
  • Clothing 11.5
  • Leather, footwear etc 4.1
  • Other manufactures 2.6

View our comprehensive playlist of revision videos on PROTECTIONISM over on the Tutor2u Youtube Channel:

https://www.youtube.com/playli...

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