Businesswise, it is very important to recognize that the taxes owed on imports are paid by domestic consumers, and not imposed directly on the foreign country's exports. The effect is nonetheless to make foreign products relatively more expensive for consumers but if manufacturers rely on imported components or other inputs in their production process, they will also pass the increased cost on to consumers. Often, goods from abroad are cheaper because they offer cheaper capital or labor costs, if those goods become more expensive, then consumers will choose the relatively costlier domestic product. Overall, consumers tend to lose out with tariffs, where the taxes are collected domestically.
The correct answer to this open question is the following.
Increases competition with foreign manufacturers, encourages practices that exploit workers. promotes free trade and not fair trade The items in the list above are examples of Neoliberalism.
Neoliberalism is an economic doctrine that is based on the free market and Capitalism taken to the extreme, where rich people get richer and poor people get poorer. Since the end of the 1970s, Neoliberalism policies invites governments to deregulate economic systems, stop spending too much on social programs, supports free trade and globalization practices, as well as increase the presence and power of private corporations.
