WAEC - Economics (2013 - No. 26)
The introduction of tariffs and quotas
reduce th prices of imports
increase the demand for locally made goods
discourage domestic industries from becoming more efficient
reduce the prices of locally made goods
Explicació
One of the main reasons for the introduction of tariffs and quotas is to support local industries and discourage imports. When goods are imported at a high cost, they would be exchanged for high prices as well. With this, local industries can easily sell locally produced goods are cheaper rates thereby increasing the market and demand for it.