IMM M2 Lesson 2: Marketing barriers: tariffs

Barriers of trade

Are things that hinder or get in the way of trading.

Cultural barriers

Language and belief systems

Technical barriers

Health and safety standards

Physical barriers

Customs, passport formalities and currency.

Fiscal barriers

Turnover tax, different value added tax, excise duty, and different sales tax

rate, price, or list of charges

Tariff is derived from a french word meaning _______

rate, price, or list of charges.

Tariff is derived from a french word meaning _______

Imports

A tariff is a tax levied on ________

Specific tariffs

Are levied as a fixed charge for each unit of a good imported

Ad valorem tariffs

Are levied as a proportion of the value of the imported good

Direction: Import and export tariffs

What classification of tariff are often imposed on the basis of the direction of product movement.

Protective tariffs

What classification of tariff has the purpose of protecting home industry, agriculture, and labor against foreign competitors by trying to keep foreign goods out of the country.

Revenue tariffs

What tariffs has the purpose of generating tax revenues for the government

Relatively low

Compared to a protective tariffs, a revenue tariffs is ________

Length: Tariff surcharge versus countervailing duty

What classification of tariff are classified according to length of time

Tariff surcharge

What kind of tariff is a temporary action.

Countervailing duty

What is a permanent surcharge called; imposed on certain imports when products are subsidized by foreign governments.

Specific duties

Are a fixed or specified amount of money per unit of weight, gauge, or other measure of quantity.

As valorem duties

Are duties “according to value”

Combined rates

Are a combination of the specific and ad valorem duties on a single product.

Distribution point: distribution and consumption taxes

What classification of taxes are collected at a particulat point of distribution or when purchases and consumption occur

Single stage taxes

What kind of taxes is q tax collected at only one point in the manufacturing and distribution chain.

This is not collected until products are purchased by final consumers.

Value added tax

What kind of tax is a multi stage, noncumulative tax on consumption.

National sales tax levied at each stage of the production and distribution system, though only on the value added that stage.

Cascade taxes

What kind of tax are collected at each point in the manufacturing and distribution chain and are levied on the total value of a product, including taxes borne by the product at earlier stages.

Excise tax

What kind of tax is a one-time charge levied on the sales of specified products.