Tariffs make it possible for firms to protect their local markets while still setting prices on domestically produced goods well above world market levels.

Question

Quizplus · Accepted Answer

Tariffs can provide protection to local markets by artificially raising the price of imported goods, making them less competitive compared to locally produced goods. This allows firms to charge higher prices for domestically produced goods without having to worry about consumers choosing cheaper imported alternatives.

Tariffs Make It Possible for Firms to Protect Their Local