When a large nation imposes a tariff on a smaller nation and causes its terms of trade to deteriorate, the tariff is sometimes referred to as:
A) a beggar-thy-neighbor tariff.
B) a hate-thy-neighbor tariff.
C) a love-thy-neighbor tariff.
D) an aid-thy-neighbor tariff.

Question

Quizplus · Accepted Answer

A beggar-thy-neighbor tariff is a protectionist trade policy that hurts other countries' economies and benefits the imposing country's economy. By imposing a tariff on a smaller nation, the larger nation is effectively making it harder for the smaller nation to trade on equal footing, thus making the smaller nation worse off. This policy is seen as harmful to overall global economic growth and is often criticized by policymakers and economists alike.

When a Large Nation Imposes a Tariff on a Smaller