Question

Why would a country use tariffs?

Question options:16

to eliminate imported goods


to block trade with other countries


to make the price of its goods competitive


to increase trade with other countries

Answer 1

To block trade with other countries I think

Answer 2

A country would use tariffs to make the price of its goods competitive

Answer: Option 3

Explanation:

Imposition of tariffs in the form of licenses, quotas and restraints are often a politicised area of debate. This is done with the main motive to make the price of its goods more competitive.

With globalization happening at a global scale, the world is experiencing a drastic competition across the world which can pose as a huge threat to domestic industries. This can result in unemployment.

Imposition of tariffs will result in the restriction of the entry of foreign goods, giving a chance for local goods to gain an edge over them up to a point where they do not have an advantage with their foreign competitors.