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my to develop. However, some others argue that free trade just makes the local economy closely depend on the international markets instead of raising the stability of local markets. Henceforth, here will list some reasons of formulating the tariff policy.
 Increase Revenue: In order to develop the local economy and increase the government funds, most of countries charge the tariff on the imported goods and other industries. In particular, the developing countries depend on charging the tariff of import and export goods in order to raise the financial revenue.
 Protecting Domestic Employment: The government charge tariff to restrict imported goods to enter into the domestic market in order to boost the local economy. Because of more expensive goods from the foreign countries, customers are willing to purchase the cheaper products from the domestic markets instead of foreign goods. The local companies have the advantage to sell their goods and services. Henceforth, the domestic firms will extend the scale of production, and create more jobs for workers. Besides, tariff can protect the domestic employment because of stable development of companies.
 Protecting Consumers: the prohibitive tariff and protective tariff can prevent some harmful products to enter into the local markets, so tariffs protect the rights of consumers. Besides, the tariffs can make people share a lower price on the domestic products, because the government charge tariff to protect the local economy. As a result, the foreign products have a high price. Consumers have more opportunities to share the cheaper or fair price on the products. In short, tariffs protect consumers (Importers combine for tariff purposes, 1903).

3. Tariffs in small countries在小国关税

3.1 What is a Small Country?

Small countries have a smaller market in the world market and only passively receive the price without right to set the price. Besides, these countries take up a small proportion of importing and exporting goods in the world. In the small countries, tariff can’t impact the international price and the rest of the economy. The import price may rise by the full quantity.

3.2 The Effects of Tariffs in a Small Country

Price effect: In small countries, the amount of imports and exports has an imperceptible effect on international demand for the goods, so it won’t influence the international price. Therefore, when tariffs are implemented by small countries, it is no effect on the international price. They just follow the world price. When the tariff is imposed on imports, two situations must hold in the final equilibrium-the same situations as in large countries. P2=P1+Tariff. World price =domestic demand. However, now P1 stays at the free trade price. It means that the price of the import goods will increase by the quantity of the tariff. Therefore, the higher local price decreases import demand and export supply (Effects of tariffs on foreign prices, 1987).
 Consumption effect: The consumption effect of a tariff is the loss of consumer surplus for the units that consumers would consume with free trade but do not consume when the tariff increases the domestic price. In small countries, the tariff increase the local price and results