Define "tariff" in the context of international trade.

In the context of international trade, a tariff is fundamentally a tax imposed by a government on imported goods. This financial charge raises the cost of foreign products, making them less competitive compared to domestic goods. Governments may implement tariffs for various reasons, such as protecting local industries, generating revenue, or influencing trade balances.

By imposing tariffs, countries can encourage consumers to purchase domestically produced items rather than imported ones, thereby fostering national economic interests. This aligns with various trade policies aimed at preserving jobs and supporting local businesses in the face of global competition. Understanding tariffs is crucial in international business as they can significantly affect market entry strategies, pricing, and overall trade dynamics.