Discuss three objectives of Tariff and elaborate on three characteristics of it

Three objectives of a tariff are

1) To control trade between countries

2) To protect domestic industries

3) To provide a source of income

Three characteristics of a tariff are;

1) Adequate return

2) Attractive

3) Fairness

Explanation:

A tariff is an import or export tax placed on goods traded between countries, it serves to control the foreign trade between the two countries and to protect or develop local industry

A Tariff is an important source of income to countries

Three characteristics of a tariff are;

1) Adequate return

Proper return from the consumer should be factored in a tariff to account for the alternatives or normal expense pattern

2) Attractive

The tariff should be attractive to encourage consumption of electricity or complimentary goods

3) Fairness

Based on the consumption of related resources brought about by large scale utilization, large consumer tariff should be lower than those that consume less complementary resources.

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