📚 Learning Guide
Effects of Tariffs on Trade
easy

What is the primary purpose of imposing protective tariffs on imported goods?

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Learning Path

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Choose the Best Answer

A

To increase government revenue

B

To promote domestic production

C

To improve international relations

D

To lower consumer prices

Understanding the Answer

Let's break down why this is correct

Answer

The primary purpose of imposing protective tariffs on imported goods is to shield domestic industries from foreign competition. When a government places a tariff, it raises the cost of imported products, making them more expensive for consumers. This encourages people to buy locally made goods instead, which can help local businesses grow and maintain jobs. For example, if a country imposes a tariff on imported steel, it makes foreign steel pricier, leading manufacturers to prefer homegrown steel. Ultimately, this can strengthen the economy by fostering local production and reducing reliance on imports.

Detailed Explanation

Protective tariffs help local businesses by making imported goods more expensive. Other options are incorrect because Some might think tariffs are mainly for raising money for the government; It's a common belief that tariffs improve relationships with other countries.

Key Concepts

protective tariffs
Topic

Effects of Tariffs on Trade

Difficulty

easy level question

Cognitive Level

understand

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