Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Tariffs promote globalization by reducing trade costs.
B
Tariffs can hinder globalization by increasing the cost of imported goods.
C
Tariffs are irrelevant to trade policies in a globalized economy.
D
Tariffs universally benefit all countries involved in trade.
Understanding the Answer
Let's break down why this is correct
Answer
Tariffs are taxes that a government places on imported goods, and they can significantly impact globalization and trade policies. When a country imposes tariffs, it makes foreign products more expensive, which can lead to reduced imports. This can protect local industries but may also lead to higher prices for consumers and less variety in products available. For example, if a country places a high tariff on imported cars, people might buy more local cars, but they could end up paying more for them than they would for the imported ones. Overall, while tariffs can help local businesses, they can also slow down the flow of goods between countries and complicate international trade agreements.
Detailed Explanation
Tariffs make imported goods more expensive. Other options are incorrect because Some might think tariffs lower costs, but they actually raise prices; It's a common belief that tariffs don't matter, but they really do affect trade rules.
Key Concepts
trade barriers
globalization
trade policies.
Topic
Effects of Tariffs on Trade
Difficulty
hard level question
Cognitive Level
understand
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