Import Quotas

Another form of government interference with international trade. Import quotas set a limit on how many units can be imported. For example a 100,000 vehicle quota: Japanese producers would only…

Continue ReadingImport Quotas

Tariffs

A tariff (or a duty) is a tax that the government places on foreign imports. Although the government might levy a tariff for the simple purpose of raising more revenue,…

Continue ReadingTariffs

Mercantilism

An economic philosophy or doctrine which holds that a country grows rich by encouraging exports and discouraging imports. According to mercantilism, a trade surplus (exporting more than importing) is good…

Continue ReadingMercantilism

Income Taxes

When the government levies an income tax, it requires individuals and corporations to transfer some of their income in a particular period to the government. They are usually expressed as…

Continue ReadingIncome Taxes