4-3 Tariff barriers oa tariff is a barriers to trade Tariffs are taxes levied upon imports These seek to protect jobs in the home country Other countries usually retaliate o Free trade: in a free trade agreement, each country seeks to specialize in things they make most efficiently. If India is more efficient in making textiles, and the USa in making computer software. then each country rwia should focus on these Hill CThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 4-3 Tariff Barriers ⚫A tariff is a barriers to trade. ◼ Tariffs are taxes levied upon imports. ◼ These seek to protect jobs in the home country. ◼ Other countries usually retaliate. ⚫Free trade: in a free trade agreement, each country seeks to specialize in things they make most efficiently. ◼ If India is more efficient in making textiles, and the USA in making computer software, then each country should focus on these