Name:Course:Instructor:Date:Tariffs and LimitsIntroductionThe working economic dynamics of capitalistic economies are complex and easily affected by many aspects. Apparently, international trade is a delicate subject under the control of the World Trade Organization. As the world progresses and becomes a global village, the supply and demands for goods in any country must be monitored to ensure equilibrium is reached. However, given the nature of capitalistic countries, the government cannot just interfere with trade and trading practices because capitalistic forces control the market. Consequently, there are more saddle ways the government can monitor international trade.Is it possible to monitor and regulate international trade through international organizations such as the World Trade Organization? Countries set up local organizations that will allow monitoring and supervision of international trade. However, critics have asked whether this is an effective method of supervising international trade. This is an effort to address supply of goods and services in response to the local demand. Through imports, countries are able to supply the much-needed goods and services at a competitive price. This allows the economy to thrive as opportunists will seek the cheapest prices in the international market and import the goods and services (Goff 17).Fundamentals of international tradeThe scope of international trade can take different perspectives. However, it is essential to look at aspects of international trade and evaluate their value in the economy. International trade is monitored and regulated by local authorities by imposing limits and tariffs on imports. There are many arguments for the use of such techniques by local authorities in an effort to protect the economic conditions of the country. Therefore, tariffs and limits on imports are a good idea for any economy mainly because of the need to have some control on international trade. A cost benefit analysis of tariffs and limits on international trade shows the positives outweigh the negatives.The World Trade Organization is the main international organization in charge of regulating international trade. The main goal of the organization is reducing international restrictions and barriers to trade such as limits and tariffs. Economic studies have shown tariffs and limits on imports have a negative effect on local economies. Studies have also shown only local authorities and industry player`s benefit from tariffs and limits on imports. In an attempt to protect the local economy and industries against international competition, the measures put in place in the form of tariffs do more to harm to the economic structure and capitalistic principles than good (Cline 47).International trade is crucial as it boosts competition since the consumer is given different choices of products to choose. Through international imports, the market is diversified and competition enhanced. Tariffs or duties are cha...