Discuss the effects on the Supply and Demand, for goods and services in the economy, from a government intervention perspective - the application of tariffs on certain imported goods from the country of China. This is a current social problem for the country for the foreseeable future. Relate a personal experience, that was affected by this intervention (tariffs), i.e. are you paying higher prices for certain consumer items; are certain consumer items more limited in supply, causing an increase in price because the demand for same has remained constant, or increased, causing a shortage of the consumer goods, etc. Comment on how this problem can be solved from an national economic and personal economic perspective. If you have not been affected, you can use the experience of a friend or relative. Make note of this in your discussion.

Due to the pandemic, many countries wish to lower their dependence on China. In hopes of doing so, the government imposes various taxes and tariffs on imports, which would discourage the imports from China. China has large amount of man power and land and good level of technology , due to which it is able to produce goods on large scale and hence, supply them at lower prices worldwide.

Step-by-step explanation

Due to the pandemic, many countries wish to lower their dependence on China. In hopes of doing so, the government imposes various taxes and tariffs on imports, which would discourage the imports from China. China has large amount of man power and land and good level of technology , due to which it is able to produce goods on large scale and hence, supply them at lower prices worldwide.

A major problem which would arise when our nation imposes trade barriers like import tariffs then any goods imported from China will be more expensive due to which the consumers will not benefit much from buying them. Many problems can arise in such cases, like the consumer price can rise (if the good is not produced domestically), or it might be able to increase the sale (as well as producer surplus) of the domestic producer. For example : certain goods like cheaper mobile phones with all features are provided only by the Chinese companies (Xiomi, Redmi, Oppo, Vivo, Honor etc) and high import tariffs will cause an increase in their prices. The consumers will suffer as long as they have to pay such higher prices as the cheaper alternative brands are not available ( Apple are very expensive phones). The consumers will be better off only when the nation's producer can develop something which can compete in quality as well as price with the Chinese products. If the domestic producers can meet this demand, then it will benefit them also. Therefore, this problem can be solved (in both national economic as well as personal economic perspective) by finding alternative ways of production or technologies within the nation. So, the consumer can find the same good at same or lower prices produced domestically and the producers can benefit from those sales.