Question

List two common reasons why protectionists favor tariffs.

Answer 1

1. Protecting Domestic Industries

2. Reducing Trade Imbalances:

Step-by-step explanation:

1. protecting Domestic Industries: Protectionists argue that tariffs can safeguard domestic industries from foreign competition. By imposing tariffs, they make imported goods more expensive, giving domestic industries a competitive advantage. This protection is seen as necessary to preserve jobs, maintain industrial growth, and protect the economy from being overly reliant on foreign goods.

2. Reducing Trade Imbalances: Protectionists often advocate for tariffs as a means to address trade imbalances, particularly when a country's imports significantly outweigh its exports. They believe that by imposing tariffs on foreign goods, the cost of imports will rise, making domestically produced goods comparatively more attractive to consumers. This can help reduce the trade deficit and protect the domestic economy from the adverse effects of excessive imports.

Answer 2

Two common reasons why protectionists favor tariffs are:

1. Protecting domestic industries: Tariffs are seen as a way to shield domestic industries from foreign competition. By imposing tariffs on imported goods, protectionists believe that domestic industries will have a competitive advantage, leading to increased production and employment opportunities within the country.

2. Balancing trade deficits: Protectionists argue that imposing tariffs can help reduce trade deficits by reducing imports. They believe that high tariffs on foreign goods will make them more expensive, encouraging consumers to buy domestically produced goods instead. This, in turn, is seen as a way to boost the domestic economy and improve the trade balance.

Step-by-step explanation: