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Why do protective tariffs lead to reduced international trade?
O A. Other countries usually respond to protective tariffs with boycotts
and embargoes.
O B. Domestic producers have less incentive to increase production
when they're protected.
C. Protective tariffs increase the price of goods and limit the sale of
those goods.
D. There is a decreasing marginal return on sales when imports are
protected

Respuesta :

CarolineBlueberry

answer

C. Protective tariffs increase the price of goods and limit the sale of

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arshikhan8123

The correct option is C. Protective tariffs increase the price of goods and limit the sale of those goods.

Why do protective tariffs lead to reduce international trade?

Protective tariffs are designed to shield domestic producers from foreign competition by raising the price of the imported commodity. Revenue tariffs are designed to obtain revenue rather than to restrict imports.

How do tariffs affect international trade?

When a country imposes a tariff, foreign exporters have greater difficulty in selling their products. As their exports decline, they may cut prices in order to keep their sales from falling drastically.

Learn more about protective tariffs here https://brainly.com/question/2596413

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