Developing countries sometimes encounter the tariff-escalation policies of advanced countries.This means that advanced countries
A) impose higher tariffs on processed products than on primary products.
B) impose higher tariffs on primary products than on processed products.
C) impose identical tariffs on primary products and processed products.
D) allow free trade on primary products and processed products.

Question

Quizplus · Accepted Answer

Tariff-escalation policies of advanced countries typically impose higher tariffs on processed products than on primary products. This is meant to protect the domestic processing industry and discourage developing countries from exporting raw materials without adding value through processing.

Developing Countries Sometimes Encounter the Tariff-Escalation Policies of Advanced Countries