Developing countries should be encouraged to implement high tariffs to grow their local industries. To what extent do you agree or disagree?
Agree. Why?
This would provide level playing field to the local entrepreneurs who can match their output on the basis of the prices
This could persuade MNCs of elite regions to set up their units in poor nations by tying up with local organizations
This would promote business and employment, development
Disagree, why?
This could problems for local manufacturers, causing the prices of the local produce to spiral
This could prove to be counterproductive: prosperous countries will reciprocate in the same manner
Should impoverished nations erect protective trade barriers, using import levies, to bolster domestic businesses, is a perception that invites mixed responses, with some vouching for it, others outrightly rejecting it. Both the perspectives are supported by justified views, and thus, cannot be overlooked.
This policy is perceived as a formidable/powerful tool of rendering a leveled playing field to commercial enterprises and industrial units, endemic to a country, that have to otherwise struggle hard to survive the stiff competition presented by large global organisations, hailing primarily from prosperous societies, and enjoy an upper hand due to colossal financial resources, and state-of-the-art technology, available at their disposal. Therefore, such an arrangement would help native business owners by making their produce competitive. For instance, countries like Brazil have imposed heavy taxes on sports goods, brought in from the other parts of the world, to assist the local budding industries, and this system, or rather a gamble paid off well; local sports brands of this country have gained immensely in terms of local and international recognition.
Nevertheless, despite being eulogized, deployment of this policy in absolute terms is likely to boomerang, for the other countries will behave in a similarly hostile manner, and reciprocate with equally excessive charges on goods being procured from the regions following this practice. This will offset any benefits derived as the exports can be hampered extensively, resulting in loss of foreign exchange. Likewise, local manufacturing of several products, using imported components, will become expensive, and affect the native consumers quite unfavourably by taking goods out of their reach.
In hindsight, in a highly globalized world of contemporary times, enforcing this kind of set-up will have severe ramifications, turning the future of native industrial landscape into bleak; thus this should be confined to only certain sectors.
