LOW TARIFF Meaning and
Definition
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Low tariff refers to a reduced or minimal charge levied on imported goods by a country's government. It is a form of trade policy intended to facilitate international trade by lowering the cost of imported products and encouraging their consumption within the domestic market. The aim behind implementing low tariffs is to foster economic growth, promote competition, attract foreign investments, and increase consumer choices.
This term is often used when describing a country's trade policies that entail lower import duties compared to other nations or historical rates. The specific rate of a low tariff can vary depending on various factors, such as the type of product, the origin of the goods, or the existing trade agreements between nations. National governments strategically set low tariff rates to stimulate domestic industries, protect local businesses from foreign competition, or fulfill political objectives.
Low tariffs play a crucial role in international trade negotiations and global commerce. Countries with low tariff rates generally attract more foreign investment and enjoy expanded access to foreign markets. This practice also promotes international cooperation and collaboration by reducing barriers to trade, increasing exports, and fostering a favorable business environment.
While low tariffs generally encourage economic growth and market integration, they can also have consequences. Domestic industries may face challenges from foreign competitors providing cheap goods, potentially leading to job losses or a decline in local manufacturing. Balancing the potential benefits and drawbacks of low tariffs is essential for governments and policymakers when formulating trade policies that effectively serve the needs of their nation's economy.
Common Misspellings for LOW TARIFF
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Etymology of LOW TARIFF
The word "low tariff" does not have a specific etymology of its own, as it is a combination of two separate words: "low" and "tariff". However, the etymology of each individual word is as follows:
1. Low: The word "low" comes from the Old English word "hlow", which means "to humiliate" or "to cause to fall". Over time, it evolved to refer to something of lesser height, position, or importance. It is related to the Old Norse word "lagr" and the Dutch word "laag".
2. Tariff: The word "tariff" comes from the Italian word "tariffa", which originally meant a written list of prices or charges. It entered English in the late 16th century and referred to a system of duties or taxes imposed on imported or exported goods.
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