Impact of Import Tariffs on UK Businesses

These flashcards cover the impact of import tariffs on different types of businesses, consumer effects, and market entry opportunities based on the provided notes.

What is one effect of import tariffs on a business operating only in the domestic market that buys raw materials from abroad?

Increased cost of production due to higher prices for raw materials and potential supply chain disruptions.

How might import tariffs affect the prices of goods for consumers?

Import tariffs could lead to price increases for consumers, possibly reducing overall demand.

What is a potential benefit of import tariffs for businesses that sell goods both domestically and abroad?

Tariffs on imports can raise prices of competing foreign goods, potentially increasing domestic sales.

What is a negative impact on businesses that sell abroad when import tariffs are imposed?

Reduced competitiveness in foreign markets due to increased cost of production and potential supply chain disruptions.

Why might the stability of local disposable income be important for new market entrants, like Case Republica?

A guaranteed disposable income indicates a stable market environment, providing opportunities for local businesses to compete.