The biggest pro when it comes to tariffs is that domestic goods are made more attractive because the tariff raises the prices of imported goods. The largest con, however, is that the higher prices for imported goods are passed on to domestic consumers, costing them more for those goods.Continue Reading
Tariffs are generally used to protect domestic manufacturers from overseas competition offering cheaper goods. The higher prices of imported goods due to tariffs often causes foreign producers to elect to withdraw from the domestic market, reducing competition. This lack of competition removes the incentive from domestic producers to find ways to lower the prices of their goods, resulting in higher overall prices for consumers, as well as a lack of innovation that competition often causes.
Tariffs also have a negative impact on the trade balance with countries against which they are used. Foreign nations often impose their own tariffs in response to domestic tariffs, raising the prices of exported gods, which causes less demand for those goods overseas. This, in turn, results in a loss of profits for domestic producers who export goods, as well as a loss of possible jobs on the domestic front because producers must lower production or withdraw from the export market altogether.Learn more about Taxes
The Internal Revenue Service's Publication 561 provides guidelines for determining the fair market value of donated goods, but it does not give specific prices for items. This document is available on the IRS website.Full Answer >
The primary advantage of imposing quotas on imported goods is protecting new industries from foreign competitors. The main disadvantage of erecting quotas on imports is its limitation on innovation and progress.Full Answer >
The pros of business mergers include factors such as monopoly regulation, research and development, duplication avoidance and network economies, while the cons include factors such as higher prices, less choice and job losses, according to Tejvan Pettinger at Economics Help. Depending upon the scale, business mergers tend to help top executives and shareholders, but consumers and employees tend to suffer most of the cons. However, this depends on each individual merger.Full Answer >
The major advantage of factory farming is that it helps satisfy increasing demand for meat, and at affordable prices. It also saves consumers from travelling long distances in search of meat. Disadvantages include animal cruelty, substandard production methods and dumping of animal wastes in water streams.Full Answer >