Final answer:
Protective tariffs are implemented to protect domestic industries from foreign competition by raising the cost of imported goods. Their main benefit is to help domestic industries grow, but they do not encourage international trade, do not increase competition among producers, and result in higher consumer prices.
Step-by-step explanation:
The question asks about the benefits of protective tariffs. Protective tariffs are used to protect domestic industries by increasing the cost of imported goods, making the domestically produced goods more competitive in the national market. However, while tariffs are meant to support domestic industries, they also lead to higher prices for consumers and may reduce the economic gains that could be achieved through international trade mechanisms like comparative advantage, specialized learning, and economies of scale.
The correct answer to the question is c) Protect domestic industries. While protective tariffs do indeed help to safeguard local industries from international competitors, they do not encourage international trade, increase competition, or lower consumer prices. Instead, they can act as barriers to trade and can result in efficiencies within protected industries and higher costs for consumers.