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Tariffs and quotas are sometimes utilized as a form of economic protectionism; these tools restrict the import of products into a country and can benefit
Tariffs and quotas are sometimes utilized as a form of economic protectionism; these tools restrict the import of products into a country and can benefit some people, businesses, or industries but may also have a negative effect on others. In unit four, we discussed that trade deficit and tariffs are sometimes used to attempt to reduce this deficit. Imagine your state grows bananas, but the weather is a bit dry. The government has imposed a tariff on bananas imported from other states because your state's farmers cannot compete since the other states' weather allows for bigger, better bananas. This tariff raises imported bananas' prices to protect your state's farmers. If tariffs are not imposed, 10,000 parking jobs will be at risk, but if you do impose tariffs, the price will increase for consumers. Using the banana scenario above, would you impose a tariff? Why or why not
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