What Is The Role Of Tariifs In Outsourcing?
Posted by China Sourcing CommentatorDec 6
i mean that , there is any effect on outsourcing when free trade agreement settle among the countries by reducing or elimanating the tariifs?
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the higher the tariff, the less likely that item will be outsourced. The item’s true cost is item+tariff (duty)+shipping. If the LDP cost (landed duty paid) cost is higher than the domestic cost, nobody will import it.
Countrys can control the outsourcing of specific items by increasing or decreasing duties accordingly.
To oppress the masses.
Tarrifs are just a way of taxing items so that when it gets to it’s destination, the price would be somewhat competitive to what the locals are charging. Just imagine if America or the world dont have tarrifss, Chinese made products will be on higher demand as they are cheap (they still are but with tarriffs they have to increase selling prices)
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