What is one way that both the U.S. government and the Arkansas government provide protection to local businesses from foreign competition?
(1 point)
Responses
They pass a tariff on a competing foreign product.
They pass a tariff on a competing foreign product.
They forbid a company from buying anything from a particular foreign country.
They forbid a company from buying anything from a particular foreign country.
They subsidize an industry, making it cheaper for them to produce their product.
They subsidize an industry, making it cheaper for them to produce their product.
They restrict the amount of an item bought from a foreign company.
1 answer
The correct response is:
They subsidize an industry, making it cheaper for them to produce their product.
Subsidies are a common way for both federal and state governments to support local businesses by reducing production costs, which can help them compete against foreign products.
