Raising an existing tariff on grapes from Argentina will: Group of answer choices increase domestic production of grapes. increase total American consumption of grapes. increase American consumption of domestically produced grapes. increase American imports of grapes from Argentina

Question

Julius Levine

Business

2 May, 20:45

Raising an existing tariff on grapes from Argentina will: Group of answer choices increase domestic production of grapes. increase total American consumption of grapes. increase American consumption of domestically produced grapes. increase American imports of grapes from Argentina

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Nigel · Answer 1

Raising an existing tariff on grapes from Argentina will increase domestic production of grapes, as well as increase American consumption of domestically produced grapes.

Explanation:

Tariffs are basically taxes established by the federal government, which are imposed on the importation of certain products produced abroad. These tariffs have the primary objective of discouraging the purchase of certain products from certain countries, either to promote local production or to limit trade with a specific country (for example, in the case of the trade war with China carried out by President Trump).

In the event that a tariff on Argentinian grapes is raised, this would increase the cost of importation, making it more viable for consumers to buy the grapes produced in the domestic market, which would boost the production of this fruit by part of the American producers, with which the market would begin to consume more quantity of grapes produced in the United States.