3
AssignmentMultiple Choice

Globalization and Sources of International Law

Question 3 • DRHS Legal Environment of Business (06.41500) GA

Tariffs do all of the following except _____.

Answer
A
provide domestic goods an advantage over imported ones
B
be significantly reduced or eliminated by trade agreements
C
encourage economic competitiveness
D
increase customs duties on imports

Explanation

Tariffs are taxes on imported goods, so they increase customs duties and can make domestic goods more appealing by raising the price of imports. Trade agreements can reduce or eliminate tariffs. However, tariffs generally protect domestic producers from foreign competition rather than encourage economic competitiveness, so C is the exception.

AI-written and checked against the verified answer.

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