21
QuizMultiple Choice

Study Guide and Quiz

Question 21 • GA-Introduction to Business and Technology

Which of the following is a reason a country might put a tariff on imports?

Answer
A
To form an agency relationship
B
To increase its exports
C
To protect domestic companies
D
To create free trade

Explanation

A tariff is a tax on imported goods. By making foreign products more expensive, a country can give domestic companies a competitive advantage and help protect them from foreign competition. Therefore, “to protect domestic companies” is the correct reason.

AI-written and checked against the verified answer.

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