When a tariff or quota on a product is removed, this policy action:

Question

Quizplus · Accepted Answer

When a tariff or quota on a product is removed, it makes the imports cheaper and more competitive, which benefits the consumers of the product. Lower prices mean that consumers can now buy the product at a lower rate, which may lead to an increase in demand. This increased demand can lead to increased production, which can benefit both domestic and foreign producers. The removal of tariffs or quotas does not benefit the government, nor does it directly hurt nations exporting the product.

When a Tariff or Quota on a Product Is Removed