High tariffs encourage multinational corporations to set up factories to produce locally.

Name: High tariffs encourage multinational corporations to set up factories to produce locally.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

High tariffs increase the cost of importing goods, making it more cost-effective for multinational corporations to set up factories in the country where the tariffs are applied. This allows them to produce goods locally instead of importing them, thereby avoiding the high tariffs.

High Tariffs Encourage Multinational Corporations to Set Up Factories to Produce