Answer to Question #122038 in Economics for Felicia

Question

Tariffs are an integral part of international trade policies and are often employed if/when deemed necessary.

Make use of an appropriate diagramme to present the effects of the introduction of tariffs on international

trade, with a special focus on how such tariffs would affect the producers, consumers, government and

other relevant stakeholders (if any

Answer 1

The introduction of tariffs decrease international trade, the producers and the government will be better off because of increase in domestic price and tax revenue, but consumers and importers will be worse off.