Question

What are tariffs? A) political boundaries between nations B) military blockades of specific countries C) disputes between state governments over boundaries D) taxes on the import or export of goods from a country

Answer 1

The correct answer is option D.

Tariffs are defined as an import or export tax on goods between sovereign states. The main purpose behind tariffs is to help or encourage local or national industries or markets so they can remain competitive. They are often used to help level or equalize the trade balance or trade deficit with other nations as well as to protect local industries in their infancy and to foster what's called 'import substitution industrialization'.