The contention that tariffs should be imposed when a foreign government provides financial assistance to its producers is
A) a national defense concern.
B) the infant industry argument.
C) dumping.
D) to counter foreign subsidies.

Question

Quizplus · Accepted Answer

The imposition of tariffs when a foreign government provides financial assistance to its producers is done to counter the foreign subsidies. This hurdle is created to promote fair trade practices as subsidies provided by foreign governments can create an uneven playing field for domestic producers, leading to losses for them. Therefore, the best choice is D.

The Contention That Tariffs Should Be Imposed When a Foreign