Tariff and Non-Tariff Barriers Global financing operations have tariff and non-tariff effects by impacting the ability of countries to build and invest in companies in the home country. If an organization wanted to create a company that imported raw materials subject to tariffs, it would make the product significantly more expensive to produce and export. Tariffs benefit the government by increasing revenue and also benefit domestic businesses by decreasing foreign competition. The tariff also helps protect jobs in the sector that has eliminated foreign competition, but a negative impact is felt because it causes consumers to pay more for an imported product (Hill, 2004). If a country were inclined to impose tariffs on items that an organization might need, it would increase the risk of doing business while in that company. Having one country manufacture or produce products that can be made cheaper elsewhere is not a wise use of resources and, in turn, harms global trade. When foreign countries can enter a home country and sell products at a lower price, people usually see this as a big advantage. commercial opportunity. However, if that product is manufactured in the country of origin, not only does the country of origin lose revenue from sales of that product, but the economic impacts can be even more profound. Without the need to produce that product, companies will no longer need to purchase the raw materials or hire the employees needed to maintain demand. To prevent this from happening or to impose some type of trade restriction on a foreign country, tariffs and non-tariffs are used. The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization which monitors tariffs and promotes free trade (Hill, 2004). Tariffs can protect local industries that face competition from imported goods by imposing tariffs. Tariffs are effective and widely used to protect local industries from foreign competition (Saranovic, 2006). However, this protection comes at an economic cost, as consumers have to pay a higher price for imported goods, which effectively reduces their purchasing power and leads to inefficient allocation of resources. The tariff is a tax applied to imports and is one of the oldest trade policies in existence. This tax is generally revenue for the host country's government. There are two types of tariffs; specific tariff and ad valorim tariff (Hill, 2004). A specific tariff applies a fixed fee to a specific import.