Question

Why would a country use tariffs?
Responses

to eliminate imported goods
to eliminate imported goods

to increase trade with other countries
to increase trade with other countries

to block trade with other countries
to block trade with other countries

to make the price of its goods competit

Answer 1

Countries use tariffs for several reasons, and one of the primary reasons is to make the price of its goods competitive. Here's a breakdown of the possible responses:

1. **To eliminate imported goods**: While tariffs can reduce the volume of imports, the ultimate goal is usually not to completely eliminate them but to protect domestic industries.

2. **To increase trade with other countries**: This is generally not the case, as tariffs often serve to restrict trade rather than increase it. They can lead to trade retaliations, which may further inhibit trade.

3. **To block trade with other countries**: While tariffs can act as a barrier to trade, the goal is usually not to block all trade but to regulate it and protect domestic industries from foreign competition.

4. **To make the price of its goods competitive**: This is a key reason for implementing tariffs. By imposing tariffs on imported goods, a government can raise their prices, making domestic products relatively cheaper and more attractive to consumers.

In summary, while tariffs may have various impacts on trade, a significant reason for their use is to enhance the competitiveness of domestic goods in the market.