Lowering the tariff on good X will

Question

Quizplus · Accepted Answer

Lowering the tariff on good X will make it cheaper to import from foreign countries, thus increasing the domestic imports of good X. A lower tariff will not necessarily affect the domestic price of good X or increase domestic employment in industry X, and it may have some effect even if the nation's trading partner does not lower its tariff on good X. However, the most direct and significant impact will be an increase in domestic imports of good X.

Lowering the Tariff on Good X Will