Question

Which best describes why governments enact tariffs?

A.to reduce the price of domestic products

B.to discourage consumers from purchasing foreign goods

C.to limit the sale of foreign goods

D.to ensure that domestic producers make a profit

Answer 1

The correct answer is B. To discourage consumers from purchasing foreign goods.

The purpose of the tariffs is to restrict imports by way of increasing prices for the goods which are being bought from other countries which makes them less attractive to consumers.

A country will impose trade restriction because most of taxes enters to domestic market. Examples of trade barriers include, non tariff, tariff, voluntary export restraints, and voluntary export.

Answer 2

To discourage consumers from purchasing foreign goods