• Print Page
• eMail Page

Search website for :

Home→The Westburn Dictionary of Marketing→T→tariffs

tariffs

Definition:
Customs duties imposed to yield revenue for governments or to 'protect' home industries. Revenue tariffs often apply mainly to high-value products, though some DEVELOPING COUNTRIES with a rather primitive fiscal machine may use them widely. Protective tariffs have the same purpose as QUOTAS, and since they are designed to limit imports, may be most effective when they bring in least revenue. There are two types of tariff: (a) 'ad valorem', which means the duty is charged as a percentage of the value of the goods; (b) 'specific', where the duty is a stated amount per unit of weight or volume. Compound tariffs may be a mixture of the two. Tariffs may be discriminatory in that different rates apply to different countries. Tariffs were raised by many countries in Europe and America during the Great Depression of the early 1930s in an effort to protect home industries and maintain employment. They have tended to fall in the period of trade liberalization since World War II promoted by GATT

Cross-References:
[developing countries] [General Agreement on Tariffs and Trade (GATT)] [quotas]

Links:

Figures:

© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Joanna Kinsey, James M. Livingstone and Michael J. Baker],.