Identify a government use of protective tariffs.
A) To shelter fledgling industries that can't compete without government help
B) To encourage the export of finished goods to other countries
C) To support domestic business that are bankrupt or are on the verge of bankruptcy
D) To prevent franchises of foreign retail food chains from harming local retail chains

Question

​Identify a government use of protective tariffs.
A) ​To shelter fledgling industries that can't compete without government help
B) ​To encourage the export of finished goods to other countries
C) ​To support domestic business that are bankrupt or are on the verge of bankruptcy
D) ​To prevent franchises of foreign retail food chains from harming local retail chains

Quizplus · Accepted Answer

Protective tariffs are often used by governments to shelter fledgling industries that cannot compete with established foreign industries without some kind of government assistance. By imposing tariffs, the government makes it more expensive for consumers to purchase imported goods and therefore makes domestic goods more competitive. This allows local businesses to grow and develop without being undercut by international competitors.

​Identify a Government Use of Protective Tariffs

Identify a Government Use of Protective Tariffs