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The Effect of Imposing a Tariff on a Specific Imported

question 25

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The effect of imposing a tariff on a specific imported good is to the domestic price of the good and the domestic production of the good.


Definitions:

Raw Materials

Materials in their natural, unprocessed state used as inputs in production processes.

FOB Destination

A shipping term where the seller bears the shipping costs and retains ownership of the goods until they are delivered and accepted by the purchaser.

Consignment Stock

Inventory that is in the possession of the customer but still legally owned by the supplier until sold.

Stock Discrepancies

Differences between the amount of inventory recorded and the actual inventory present, often resulting from errors or theft.

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