In the 2020 Budget Speech, the National Treasury announced that the import tariff will decrease from 5.37% in 2019 to 4.40% in 2020, a 0.97% decline. What is the aim of the import tariffs and what does this imply to the domestic firm’s production?

Question

Answer

an import tariff is used to protect domestic firms, a 0.97% decline in import tariff will discourage domestic production and make imported products cheaper.

Answer

an import tariff is used to protect domestic firms from trade exploitation, a 0.97% decline in imports will make imported goods more expensive for domestic firms.

Answer

an import tariff is used to protect foreign firms, a 0.97% decline in import tariff will encourage foreign firms to produce more for export to SA.

Answer

an import tariff is used to protect domestic firms, a 0.97% decline in imports is too small to have an impact on the domestic firm’s production.

Crowdly

In the 2020 Budget Speech, the National Treasury announced that the import tarif...

Want instant access to all verified answers on mymodules.dtls.unisa.ac.za?