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What is the purpose of a protective tariff?

A. Encourage international trade
B. Protect domestic industries
C. Reduce government revenue
D. Promote economic equality

1 Answer

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Final answer:

A protective tariff is implemented to protect domestic industries by making imported goods more expensive, thus promoting local products over foreign competition.

Step-by-step explanation:

The purpose of a protective tariff is to shield domestic industries from foreign competition. Tariffs are placed on imported goods as a way of protecting sensitive industries, for humanitarian reasons, and for protection against dumping. By enforcing tariffs, a country can support its own industries by making foreign goods more expensive compared to domestic products, thereby encouraging consumers to buy locally produced items. Protectionism is the larger economic policy stance wherein tariffs play a crucial role, along with import quotas and nontariff barriers. This approach may lead to a decrease in international trade as it discourages imports through increased costs.

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