Chapter 8R, Problem 19MCQ

To determine

To find:

Fact about tariffs

Explanation of Solution

Imports are constrained by tariffs. Simply expressed, they raise the cost of products and services bought from another nation, making them less alluring to domestic customers. Understanding how a tariff impacts the exporting nation is crucial since customers there may be less likely to buy imports as a result of the tariff's price increase. The tax has, however, basically increased the cost to the customer in another nation if the consumer chooses to purchase the imported good. Tariffs can essentially start a war among two nations since the exporting country will face challenges extending its product market due to such regulations.

Thus, from the above we can conclude that the correct option is C.