TARIFF REDUCTION Meaning and
Definition
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Tariff reduction refers to the deliberate decrease or lowering of import duties or taxes imposed on goods and services traded between countries. It is a policy action taken by governments in order to encourage international trade and foster economic cooperation among nations.
Tariffs are generally levied on imports to protect domestic industries and ensure fair competition. However, they can also hinder free trade, increase the costs of imported goods, and limit consumer choices. By reducing tariffs, governments aim to stimulate trade flows, promote export-oriented industries, and enhance overall economic growth. This reduction in tariffs can be done unilaterally by a single country or bilaterally/multilaterally through negotiations and agreements between nations.
The process of tariff reduction typically involves negotiations between countries to establish mutually beneficial trade terms. Governments may participate in trade agreements, like free trade agreements or regional trade blocs, where participating countries pledge to decrease tariffs on specific goods or across various industries over a predetermined period of time. Tariff reductions can also be a result of multilateral negotiations under international organizations, such as the World Trade Organization (WTO).
Tariff reduction can have several positive impacts, including increased market access, lower prices for consumers, expanded business opportunities, and greater international integration. However, it can also lead to challenges for certain domestic industries that face increased foreign competition. Therefore, policymakers must carefully evaluate the potential benefits and drawbacks of tariff reduction based on the specific economic circumstances and national interests.
Common Misspellings for TARIFF REDUCTION
- rariff reduction
- fariff reduction
- gariff reduction
- yariff reduction
- 6ariff reduction
- 5ariff reduction
- tzriff reduction
- tsriff reduction
- twriff reduction
- tqriff reduction
- taeiff reduction
- tadiff reduction
- tafiff reduction
- tatiff reduction
- ta5iff reduction
- ta4iff reduction
- taruff reduction
- tarjff reduction
- tarkff reduction
- taroff reduction
Etymology of TARIFF REDUCTION
The etymology of the word "tariff reduction" can be broken down as follows:
1. Tariff: The word "tariff" originates from the Italian term "tariffa", which referred to a table or list of duties or taxes imposed on imported or exported goods. The Italian word has its roots in the Arabic term "ta'rif", which means "making known" or "to specify".
2. Reduction: The word "reduction" is derived from the Latin term "reductio", which means "a bringing back" or "restoration". It is formed from the combination of the prefix "re-" (meaning "back" or "again") and the verb "ducere" (meaning "to bring" or "to lead").
When combined, "tariff reduction" refers to the act or process of reducing or lowering the duties or taxes imposed on imported or exported goods.
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