Which of the following is a reason a country might put a tanff on imports?
A To form an agency relationship
B. To increase its exports
C To protect domestic companies
D To create free trade
Please select the best answer from the choices provided
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C To protect domestic companies

Explanation:

Import tariffs are a tax imposed on specific goods or services imported in a country. The tax makes the cost of the import expensive in the importing country. An imports tariffs is a source of revenue for the government and also protects domestic industries from unfair competition from cheaper imports.

A country imposes import tariffs as a protection measure for its domestic industries.  If unchecked, cheap imports from more advanced economies can impede the development of local factories. Domestic products may be unable to compete with cheap imports meaning they will experience low sales volumes. Poor sales and low profits results in slow growth, and the possible collapse of the domestic manufacturers.

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