Question: Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home, in theory, which could

Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home, in theory, which could be produced more efficiently abroad. Explain

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A protective tariff is a tax imposed on imports to raise their price in the domestic market making t... View full answer

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