The Italian government imposed duties on products imported from Canada such as automobiles and consumer electronics to raise their prices in the local market and to protect the local companies from competition.This type of trade barrier being used by the Italian government is an example of a(n)_____.

Question

Quizplus · Accepted Answer

A protective tariff is a trade barrier that increases the price of imported goods to protect the domestic industries from foreign competition. In this case, the Italian government imposed duties on Canadian products to raise their prices in the local market and protect local companies. An embargo is a complete ban on trade with a particular country, import quota limits the quantity of imports of a particular product, and a revenue tariff is imposed to generate revenue for the government rather than protecting the domestic industry. Hence, the best choice is B as it best fits the scenario described.

The Italian Government Imposed Duties on Products Imported from Canada