Profit-shifting Tariff

Profit-shifting tariff in Global Commerce Policy

In this regard, profit-shifting tariff is: a concept in economic theory founded in mercantilism which proposes that it is possible to shift monopoly rents from a foreign country to one ™s own territory through the imposition of a tariff. The tariff would cream off the excess profit the foreign firm would otherwise be making. The entries on trade policy are here. Economists have noted that the profit-shifting tariff is yet another mercantilist argument for restricting imports and promoting exports.[1]

Profit-shifting tariffin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Profit-shifting tariff” entry (OAS)

See Also