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Alika [10]
3 years ago
5

Yes. Companies should be protected by tariffs.. why?

Business
1 answer:
Reptile [31]3 years ago
4 0

Answer: See explanation

Explanation:

A tariff is a tax that the government imposes on either the imports or the exports of products or sevices.

Apart from the fact that tariff is a way of generating revenue by the government, tariffs help protect the domestic industry. This is because tariffs increases the price of imported goods.

Since there is an increase in the price of the imports, consumers tend to buy from the local manufacturer since their products tend to be cheaper when compared to the imports. This gives an edge to the domestic companies.

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