State Government Levy Tariffs on Imports Coursework

State Government Levy Tariffs on Imports - Coursework Example Therefore, other countries prefer these goods because of the advantage of price and quality. Governments can raise revenues by levying imports but on the other hand, they can raise revenue by setting tax policy where people pay taxes and the government gets money. Additionally, governments write laws whereby offenders receive punishments through a fine or penalty and collect money from them (Feenstra & Romalis, 2002). Moreover, they can engage in economic activities like farming and tourism and this could be a source of income. The advantages of levying taxes are as follows. Countries are able to achieve high standards of living by obtaining quality products as well as the importation of raw materials to produce and export finished goods (Lee & Johnson, 2008). In addition, it helps save money by importing high quality goods at a lower cost. The disadvantages include the erosion of national economies specifically when imports exceed exports. In addition, countries accept social values that conflict with the domestic values thus making people adapt to new disregarded values i n