Tariffs are government policies designed to encourage international trade.

Question

Quizplus · Accepted Answer

Tariffs are not designed to encourage international trade. They are taxes imposed on goods that are imported from foreign countries to protect domestic industries and to raise revenue for the government. Tariffs make imported goods more expensive and thus less attractive, which may reduce the quantity of foreign goods bought by domestic consumers, and can lead to trade disputes between countries.

Tariffs Are Government Policies Designed to Encourage International Trade