What is the most common reason for a country to establish a tariff?
O
A. To reach an agreement with another country to increase trade
O
B. To encourage local industries with direct financial support such as
tax breaks
O
c. To reduce competition from imported goods by making them
more expensive
O
D. To increase exports by lowering their price so other countries will
buy them

The answer is C.

Domestic Employment If a domestic segment or industry is struggling to compete against international competitors, the government may use tariffs to discourage consumption of imports and encourage consumption of domestic goods, in hopes of supporting associated job growth, especially in the manufacturing sector.

To reduce competition from imported goods by making them

more expensive

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