Question

Which of the following is a reason a country might put a tariff on imports?

a. To form an agency relationship
b. To increase its exports
c. To protect domestic companies
d. To create free trade

Answer 1

The Answer is Choice C.

Answer 2

The following reason a country might put a tariff on import is C.) TO PROTECT DOMESTIC COMPANIES.

This reason is not only for tariff but also for quota imposed on imports.

Tariff is a tax imposed on goods imported from other countries.
Quota is a numerical limit of how much or how many an imported good can be imported in the country.