What effect do tariffs have on trade?

Multiple choice question for The International Economy And Globalization. Select an option, then review the explanation below.

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Lower the price of goods within the countryBoost government revenue through taxationRaise the volume of imported goodsReduce the level of domestic manufacturing

Explanation

Tariffs are taxes on imported goods intended to make them more expensive, which generally reduces the amount of imports rather than increasing them. Therefore, tariffs do not increase the quantity of imports; instead, they tend to protect domestic producers by discouraging imports.

Practice related questions from the same subject.

1.In which type of goods do Less Developed Countries (LDCs) typically hold a comparative advantage?
2.Why did output decline drastically in the economies undergoing transition?
3.When products are sold abroad at prices below the marginal cost of production and the marginal benefit to local consumers, which policy is most likely supporting this situation?
4.How do tariffs affect the production levels of domestic companies and the consumption habits of consumers?
5.The equilibrium exchange rate adjusts to neutralize disparities in which of the following international economic factors?

What effect do tariffs have on trade?

Explanation

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