USA HISTORY

Detailed explanation-1: -A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products.

Detailed explanation-2: -Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result.

Detailed explanation-3: -Answer and Explanation: ‘Exports tariffs are used by countries when they believe an export’s price is lower than it should be’ is a true statement. Export tariffs are used when the country wants to limit the sale of domestically produced goods in foreign countries.

Detailed explanation-4: -Alexander Hamilton was the first American to propose the use of protective tariffs to promote industrialization in his “Report on Manufactures.” Hamilton thought that a tariff on textile imports would subsidize American efforts to establish manufacturing facilities to eventually compete with those of the British.