GCEEconomicsInternational Trade2024

A tariff imposed on imported goods is primarily intended to

Aincrease the volume of exports from the domestic economy
Braise government revenue and protect domestic industries from foreign competitionCORRECT
Creduce the cost of production for domestic manufacturers
Dencourage foreign direct investment into the country
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Why the answer is B, and why the others tempt you.
A tariff is a tax levied on imported goods. Its primary purposes are to generate revenue for the government and to raise the price of imported goods, thereby making domestically produced goods more competitive and protecting local industries from cheaper foreign competition. It does not directly boost exports, reduce domestic production costs, or attract foreign direct investment.
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