VILLARAZA, Arianna J.

4Bio-1

1. Is there a need for a country to participate in international trade? Why?

International trade is an important element in the economic status and greatly influences
economic growth in every country and all countries and global market as a whole. It helps
countries get closer to supply and demand equilibrium as there are countries that specialize
in producing goods, which result in less dead weight loseses. Some products in other
countries also provide more efficient rates than others. Different countries have various
resources that contribute in the market and exchange of these products Increases public
utility, with minimal price increases.

2. What are the things we cannot import? Explain.

Highly perishable goods are a category of products that will be difficult to import. Natural
resources that are highly valuable and specialized in other countries cannot be imported to
preserve novelty. Land, as well, is physically impossible to import. There are certain lists by
the Philippine Tarriff and Customs Code includes a set of categories of products that are not
allowed to be imported such as ammunition or weapons, written docuents of obscene
character are also prohibited as it could be detrimental to the country’s image and could be
seen as objects that negatively influence the market.

3. Why do we see taxes as burden?

People, especially in third world countries, sees taxes as a burden because they are
additional expenses from what we normal consume and deductible from salaries or pay. It
could be seen as a burden especially in countries where taxes are not normally utilized
under unfortunate circumstances such as government corruption, etc. Governments usually
impose taxes to utilize this money to improve the country’s state, making the concept of
taxes quite political.