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4 January, 15:30

Tariffs can be thought of as indirect: Multiple Choice subsidies to foreign producers. special taxes on domestic producers. subsidies to domestic consumers. subsidies to domestic producers.

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  1. 4 January, 15:46
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    subsidies to domestic consumers
  2. 4 January, 17:42
    0
    The correct answer is letter "D": subsidies to domestic producers.

    Explanation:

    Tariffs are levies imposed on imports to promote domestic production and discourage the purchase of goods abroad. Imposing tariffs and quotas usually cause a trade war in which the country affected counterattacks by imposing taxes on the company that started passing tariffs.

    Under such a scenario, tariffs could represent indirect subsidies to domestic producers because, at a certain level, the decrease in imports promotes domestic goods consumption.
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