A nation can gain from imposing a tariff on imports if it forces exporting countries
A)to raise their prices to pay the tariff.
B)to lower their prices to avoid stocks of unsold goods.
C)to produce at diseconomies of scale.
D)to accept some imports from the tariff-imposing nation.

Question

Quizplus · Accepted Answer

Tariffs can lead to exporting countries lowering their prices to maintain competitiveness and avoid accumulating unsold goods, as the added cost of the tariff can make their products more expensive in the importing country's market.

A Nation Can Gain from Imposing a Tariff on Imports