According to the developing government argument, tariffs imposed by a developing country:
A)may benefit the country because they represent an efficient mechanism for collecting revenue, but will harm the world.
B)can benefit the country by creating net social gains.
C)will be as inefficient as tariffs imposed by developed countries.
D)are likely to represent only a very small fraction of government revenues because the volume of imports in developing countries is relatively small.

Question

Quizplus · Accepted Answer

According to the developing government argument, tariffs imposed by a developing country can benefit the country by creating net social gains. This is because tariffs can protect domestic industries, reduce imports, and promote local production, which can create jobs and increase economic growth. Additionally, tariffs can provide revenue for the government, which can be used to fund public goods and services. However, the World Trade Organization (WTO) argues that tariffs can also harm the world by distorting trade and reducing global welfare.

According to the Developing Government Argument, Tariffs Imposed by a Developing