Question

Four Roses produces bourbon in Kentucky. It has a growing export business due to the global popularity of the beverage. Some countries, such as China, impose tariffs on bourbon produced in the United States to strengthen their own domestic brands. This strategy is known as _______.

Answer 1

The strategy of imposing tariffs on foreign products like bourbon to support domestic industries and protect jobs in the imposing country is known as a protectionist trade policy. This form of trade barrier is used to control the importation of goods and can also serve national security or cultural identity purposes.

Step-by-step explanation:

The strategy mentioned in the question where a country like China imposes tariffs on imported products such as bourbon from the United States to protect its own domestic brands is known as a protectionist trade policy. Tariffs are a form of trade barrier that governments use to control and limit the amount of foreign imports into a country, often to support local industries and jobs. In cases where geopolitical rivals are involved, or where the production of a good relates to national identity or security, countries might implement tariffs and trade restrictions to prevent dependence on other nations and to maintain their cultural integrity.