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The research that relates to the consumer attitudes toward the foreign products has been done in the industrialized countries. These have the advantage of their large internal markets as well as a range of domestic brands by which to compete and compare against each other. The international trade increases the number of goods that consumers can choose from which would follow with a decrease of cost from increased competition. In this way, domestic industries are allowed to take their business to international standings. All of this seems quite beneficial to those involved, but the truth is that it is not beneficial to every party.
Tariffs, in this case, come in to protect infant industries, as well as the developing economies. However, they are also used in the developed economies for various reasons. Imports need regulation in order to put them at the same level as the domestically produced goods. The possibility of increased competition from less expensive international products can threaten to close domestic industries. The domestic industries may react negatively to such competition in the form of laying off workers or shift their production in order to cut their overall costs.
Thus, the government has often tried to encourage feelings that would make the consumer feel bad about buying imported goods because it would not be patriotic (Nijssen and Douglas, 3). On this note, the government may levy tax or a tariff on goods that it feels would jeopardize the welfare of the population. There are many examples where countries have done this on some products in order to protect the population. For example, South Korea may place a tariff that was imposed on beef from the United States; however, in this instance, the case was not related to competition. Rather, there may have been suppositions that the beef was tainted.
Nijssen, Edwin J. and Douglas, Susan P. “Attitudes Toward The Purchase Of Foreign Products:
Extending The Model”. Stern School of Business. New York University. University of Nijmegen. 1999. Web. Retrieved from September, 11, 2011 from http://people.stern.nyu.edu/sdouglas/rpubs/attitudes.html
Radcliffe, Brent. “The Basics Of Tariffs And Trade Barriers”. investopedia.com. web. Retrieved
September 11, 2011 from http://www.investopedia.com/articles/economics/08/tariff-
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