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Why might a country use a tariff and quota?

to decrease specialization

to protect its own natural resources

to decrease expenses

to protect against foreign competition

User DogCoffee
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1 Answer

6 votes

Answer:

To protect against foreign competition

Step-by-step explanation:

Governments may impose tariffs to raise revenue or to protect domestic industries—especially nascent ones—from foreign competition. By making foreign-produced goods more expensive, tariffs can make domestically produced alternatives seem more attractive.

Governments that use tariffs to benefit particular industries often do so to protect companies and jobs. Tariffs can also be used as an extension of foreign policy: Imposing tariffs on a trading partner's main exports is a way to exert economic leverage.

User NPS
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