Economics 0455 · IGCSE · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

Country X thinks that country Y is exporting steel at a price lower than the average cost of production. As a result, country X places a higher tariff on steel imports from country Y. What does country X expect to achieve by introducing this higher tariff?

  • Aavoid country X dumping steel in country Y
  • Bavoid country Y dumping steel in country X
  • Creduce inflation in country X
  • Dreduce inflation in country Y

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