What is the purpose of tariffs on imports?
A) Maintaining domestic competitiveness
B) Decreasing exports
C) Increasing imports
D) Subsidizing domestic industry
E) Promoting free trade

Question

Quizplus · Accepted Answer

Tariffs on imports are mainly imposed to protect domestic businesses from foreign competitors. By adding tariffs to imported goods, domestic goods become more affordable and attractive to domestic consumers, therefore maintaining their competitiveness. It also helps to prevent the dumping of goods by foreign companies that may sell their goods at a lower price than their manufacturing cost, driving domestic business out of the market.

What Is the Purpose of Tariffs on Imports