Question

Suppose the increase in tariff on imports of goods and services from china and EU countries caused a capital flight of currency from the United States. Show the effects on US exports,imports and trade balance from this capital flight by foreign investors.

Answer 1

Solution. the tariff on import of good Increase in and Service - If the increase in tariff that means increase in the tax on the import and export. Tarift is means belong to tax and regulate with the forcign trade and a policy the policy also belong to the tax of increase in the product of domestric industry. In the good and Service tariff is fixed with the unit pe import code and percentage of that product price: Tarift is oso use few to the reduce the pressure to foreign Comptition If any county good and Service product government • apply more tax then product of productivity is reduce then its effect on the Carntry economić qouth, In the industry there any tax apply more then its effect on import of good and service

There are some type of tanilt that proverenent apply. lij Import quotas in voluntary export restraints Lii) Licenses . liv Specific tariffs IV local content requirement (vi) ad volorem faritti Taritt is most disadvantage is that it effect on the import of good and service of a Country economic grou the Iching and EU Country when import any capital I flight then hat both Country pay the more tax on it if the tariff import is increase in the United state. It increase tariff of tax in import on good and service of United state then the export of product ratio is also decrease and its effect on the anually economic growth of united state.