In recent years, a large number of the countries are focusing on less import by imposing huge tariff on the products to promote local industry. Though this attempt will bring short term benefit, in the long run it will hamper relationship with foreign countries and demotivate to investment in host country. This essay will discuss the reasons why I am disagree with former statement and along with relevant examples.
To begin with, imposing tariff can increase the price of essential products. For instance, Price of cars such as premio, Allion has increased, when Bangladesh government imposed high tariff. It also negatively effect on automobile industry business. Beside this, restrictions do not encourage foreign investment. For example, due to heavy tariff restrictions by USA, chines investors often feeling demotivation to invest in American companies.
Moreover, heavy trade restrictions deprive local consumers to get the taste of overseas products. Consequently, they try to use wrong way to get the product in hand. Such as, a large number of bike lover of Bangladesh, import bike by crossing border without importing legal way. As a result, government are not receiving tax.
However, there are many reasons why trade restriction sometimes beneficial. Firstly, it promotes local small business ventures to set up business. By this way, more employment opportunities will create for unemployed youngsters. Secondly, business leaders can make more realistic decisions which paves the way of implementing more creative ideas. Finally, the host country become self-affluent temporarily.
In epitome, in this age of globalization, it is quite impossible to become self-sufficient. Though imposing tariff restrictions bring short term benefit for a country, it could bring negative impact in long run which is beyond description.