Analysing the National Tariff Policy

Usman Qadir


What is the role of import tariffs in a modern economy?
Tariffs may seem an easy source of revenue, but they do have real
consequences for the economy. The use of tariffs makes imported goods
more expensive. It can be used as a means to prevent the exchange rate
from fully adjusting to market value reducing incentives for export
while increasing incentives for import substitution. Tariff policy can
thus affect the product mix of country, including its direction of
industrialisation, which in the complex globalised world of today
determines its place in the global value chain.

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