Asked by Waseem Nazir on Jul 04, 2024
Verified
If a country that produces wine enacts a tariff on imported wine to match the country's domestic wine price,this would be an example of a protective tariff.
Protective Tariff
A levy placed on foreign goods to safeguard local industries by increasing the cost of imports, hence reducing their attractiveness compared to domestic products.
Imported Wine
Wine that is brought into a country from another country, typically for retail and consumption within the importing country.
- Identify various forms of trade barriers and understand their effects on global commerce.
Verified Answer
SM
Semsudin MuminovicJul 09, 2024
Final Answer :
True
Explanation :
A protective tariff is imposed to protect domestic industries from foreign competition by increasing the price of imported goods, making domestic products more competitively priced.
Learning Objectives
- Identify various forms of trade barriers and understand their effects on global commerce.