If a government imposes high enough tariffs, one result will be that
A) foreign producers will be able to sell more goods.
B) domestic producers will face no foreign competition.
C) consumers will benefit from lower prices.
D) markets will become more globalized.

Question

Quizplus · Accepted Answer

High tariffs discourage foreign producers from exporting to the domestic market as it makes their products more expensive compared to domestic products. Hence, domestic producers face little or no foreign competition, which can benefit them. However, this may not necessarily benefit consumers as they may end up paying higher prices for the domestic products. High tariffs can also potentially lead to retaliation from other countries and harm global trade.

If a Government Imposes High Enough Tariffs, One Result Will