Which of the following is a common reason for a government to impose tariffs on imported goods?

Prepare for the FBLA International/Global Business Exam! Study with flashcards and multiple choice questions, each with hints and explanations. Get set for success!

A government often imposes tariffs on imported goods primarily to protect domestic industries. This action helps local businesses by making imported goods more expensive relative to domestic products, thereby encouraging consumers to purchase from local producers. By increasing the cost of foreign goods through tariffs, governments aim to support and stimulate local industries that may struggle to compete with cheaper imports.

This protectionist measure can lead to job preservation and economic stability within the domestic market. It also provides an opportunity for emerging industries to grow without facing overwhelming competition from established foreign companies. By fostering a favorable environment for domestic production, governments can contribute to the overall health of their national economies.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy