Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home,in theory,which could be produced more efficiently abroad.

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Tariffs can actually decrease the overall efficiency of the world economy by creating trade barriers, reducing competition, and raising prices for consumers. They can also lead to retaliatory tariffs from other countries, resulting in a trade war and further hurting the global economy.

Tariffs Increase the Overall Efficiency of the World Economy Because