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With no need to manufacture that product companies will no longer need to purchase the raw materials or hire the employees necessary to maintain the demand. To eliminate this from occurring or to impose a type of trade restriction on a foreign country tariffs and nontariffs are utilized. General Agreement on Tariffs and Trade (GATT) was succeeded by the World Trade Organization monitors tariffs and promotes free trade (Hill, 2004.)
Tariffs is a tax applied to an import and is one of the oldest trade policies in effect (Hill, 2004.) This tax is generally revenue for the charging country's government...
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