Tariff and Subsidies Homework Help

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Tariff and subsidies are two integral concepts of macroeconomics. Tariff is a tax taken on exports and imports made inside or outside the country. This tariff is even known as trade tariff. Subsidies is a form of assistance paid to the economic or business sector, mostly it is distributed as subventions for preventing the decline of a particular industry. Both of them help different industries by encouraging export & import, giving them the ability to attain self-sufficiency and allowing them to expand in an overall perspective.

Tariff and subsidies are closely related to each other. As, for export and import subsidies organizations, individuals or country has to use appropriate tax measures (tariff trade) to make sure that the goods are treated fairly under the tax system that governs the country.

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