Asked by Sydney Horton on May 12, 2024
Verified
A protective tariff will
A) increase the sales of foreign exporters.
B) increase the price and sales of domestic producers.
C) increase the welfare of domestic consumers.
D) create an efficiency gain in the domestic economy.
Protective Tariff
A tariff imposed on imports to protect domestic industries from foreign competition by making imported goods more expensive.
Domestic Producers
Companies or individuals within a country that manufacture goods or offer services domestically.
- Comprehend the basic principles of trade protection strategies, including tariffs, quotas, and self-imposed export limitations.
Verified Answer
SP
shavonda payneMay 13, 2024
Final Answer :
B
Explanation :
A protective tariff is designed to shield domestic industries from foreign competition by making imported goods more expensive. This leads to higher prices and potentially increased sales for domestic producers, as their goods become relatively cheaper compared to the imported ones.
Learning Objectives
- Comprehend the basic principles of trade protection strategies, including tariffs, quotas, and self-imposed export limitations.