Question

Which government action would interfere with free trade?
(1 point)
Responses

increasing taxes on domestic producers
increasing taxes on domestic producers

charging duty taxes on foreign goods
charging duty taxes on foreign goods

adding a value-added tax to consumer goods
adding a value-added tax to consumer goods

giving contracts to factories in other countries

Answer 1

Choose a abswer

Answer 2

Charging duty taxes on foreign goods would interfere with free trade. Duty taxes, also known as tariffs, are imposed by a government on imported products. By increasing the cost of these products, tariffs can make them less competitive in the domestic market compared to locally produced goods. This interference can protect domestic industries but also has the potential to provoke retaliatory measures from other countries, possibly leading to trade wars that can further hinder the free flow of goods and services across borders.

Answer 3

Charging duty taxes on foreign goods.