ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumer from higher prices on foreign goods.
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consumer from higher priced goods produced within the country.
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manufacturer from higher prices on materials produced within the country.
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manufacturer or farmer from lower priced goods imported into the country.
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Detailed explanation-1: -A protective tariff is intended to protect the manufacturer or farmer from lower priced goods imported into the country. Correct answer: D The idea behind the protective tariffs is growth of local industries and their protection from a flood of cheap foreign goods.
Detailed explanation-2: -Protective tariffs are designed to shield domestic production from foreign competition by raising the price of the imported commodity. Revenue tariffs are designed to obtain revenue rather than to restrict imports.
Detailed explanation-3: -Protective 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.
Detailed explanation-4: -Meaning of protective tariff in English. a tax intended to increase prices of imports and protect a country’s industries from foreign competition: Free-trade advocates are against the protective tariff.
Detailed explanation-5: -If a protective tariff is placed on an imported product, the added cost will go to the government. Efficient currency exchange markets have eliminated countertrade in global business transactions. Effective human resource management styles are transferable from one culture to another.