Question

5. What is protective tariff? *

10 p
O
a. Generates revenue from imports
b. Protects US business and economy by taxing imports
c. A system under which one currency is fixed

Answer 1

DescriptionProtective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise; supporting local industry.