Sample Business Law Paper on Tariffs

1. Define tariffs and how they are calculated. How can tariffs help or hinder a nation’s
economy?
Tariffs are taxes imposed by the government on those services and goods imported from
other nations to serve the purpose of increasing price and making imports less desired or
reducing competition with goods and services that are domestically manufactured. Besides
being a measure to protect domestic products and industries, tariffs are used as a source of
revenue for the government. Therefore, tariffs are basically taxes that are charged on
services and goods as they transit from one country to the other. The country that is
importing goods and services is the one that imposes tariffs. It is calculated by dividing the
sum of total tariff revenue by the sum of total import value. Tariffs help a country by
generating revenue on services and goods that are brought into the country. Through tariffs,
a country can manage to support its political goals and stabilize its industries (Schmitthoff, C.
M. (2020).
2. Define a non-tariff barrier and list and define three types of non-tariff barriers.
These are trade barriers that regulate or restrict exports or imports of services and goods
using other mechanisms besides simple tariff imposition. In fact, it is a measure other than
just a custom tariff aimed at redistricting international trade. Non-tariff barriers include but
are not limited to: Sanctions, levies, quotas, and embargoes (Kinzius, L., Sandkamp, A., &
Yalcin, E. (2019).
Sanctions: – These are penalties or means of punishment imposed on a party that disobeys
court orders or the law itself. The main aim of a sanction is to force a country to obey
international law by ceasing to trade with the affected country.
Levies: – these are legal means that an authority imposing the tax or a bank can seize
property for debt payment. Properties that are subject to seize are both intangible and
tangible (cash, cars, houses).

3
Embargoes are orders issued by the government to restrict exchange with a specific country
due to economic or political problems.
References
Kinzius, L., Sandkamp, A., & Yalcin, E. (2019). Trade protection and the role of non-tariff
barriers. Review of World Economics, 155(4), 603-643.
https://link.springer.com/article/10.1007/s10290-019-00341-6
Schmitthoff, C. M. (2020). International business law: a new law merchant. In Current Law and Social
Problems, II (pp. 129-153). University of Toronto Press.
https://www.degruyter.com/document/doi/10.3138/9781487575892-004/html