How are subsidies similar to tariffs? both are types of taxes. both aim to lower the price of domestic goods. both try to raise the price of imported goods. both aim to disadvantage imports

The correct answer is:

Both aim to disadvantage imports

Explanation:

Tariffs are taxes applied to imports, making the product more expensive to protect national products, while subsidies are financial aids made by the government to a specific domestic industry to obtain cheaper costs producing products inside the nation, with lower prices so they can compete with international products that are more expensive. Tariffs and subsidies are both trade barriers that aim to disadvantage imports and protect national products.

Both aim to disadvantage imports

Further Explanation:-

The barrier in order to trade is a law that is imposed by the government on the circulation of overseas goods or services. Most Common barrier in trade is Tariff. Tariff Is a form of tax on imports. Because of the tariff, there is a rise in the prices of imported goods as compared to domestic goods. Apart from Tariff, Another hurdle to trade is said to be Subsidy. Subsidy is related to the domestic industry. Subsidies make these goods cheaper in order to produce or manufacture in domestic markets as compared to foreign markets. The result of this comes out as lower domestic prices. If we compare both tariff and subsidy, these both bring rise to the price of goods and products from the foreign market as compared to domestic products and this brings a fall in imports. Subsidies are similar to tariffs because both are forms of Taxes.  

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Answer Details

Grade – High School

Subject – Economy

Chapter – Tariff and Subsidy

Keywords – overseas,Tariff,domestic, goods,Subsidy,foreign, markets,Taxes,imports,prices

1 > george s. boutwell

2 > general ulysses s. grant

3 > james a. garfeild

4 > adolph e. borie