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What are Tariffs and Subsidies?

Tariffs and subsidies are the part of Economics that deals with the taxes or interest for the different goods and services. The imposed tax to those products or the services which are imported is known as tariffs. This imposing tax method is very much affecting the imported objects as it is the best way to restrict those products which are imported. This is one of the perfect tools in the hand of government, where they can easily give importance to the home products by increasing tax on imported products. As this will laid the increase of the goods and services, and then the number of purchasers will be reduced.

If you go through the topic of subsidy, then you can easily get that it is one of the perfect way of giving benefit to the consumers or individuals or groups. It may be some cash amount or reduction value on products or services. The positive point is a customer tries to grab more if he gets subsidy on a product.

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