Question

Why are tariffs imposed?

Options

• Tariffs are imposed to make imports from foreign countries relatively expensive than domestic goods, thereby,

• These are imposed to provide a safe and protective environment to the infant domestic firms from their technologically advanced foreign counterparts. discouraging imports indirectly

• Tariffs facilitate the domestic firms to survive and grow.

• All of the above

Answer 1

All of the above

Explanation:

Tariffs are established to make imported goods from other countries more expensive than native goods, hence discouraging imports. These are in place to defend domestic enterprises from their technologically sophisticated overseas counterparts in a safe and secure environment. Tariffs help domestic businesses survive and grow. Tariffs are also placed on commodities that the government considers to be socially undesirable and whose importation would place an undue strain on the country's limited foreign exchange reserves.