What is the primary role of tariffs in international trade?

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The primary role of tariffs in international trade is to protect domestic industries by increasing import costs. By imposing tariffs on imported goods, a government elevates the cost of these products. This makes domestic goods relatively cheaper and more competitive in comparison, encouraging consumers to buy from local producers. The intention behind this is to support local jobs, industries, and the economy at large. Governments often use tariffs as a tool to promote domestic production and safeguard against foreign competition that could potentially harm local businesses.

The other options highlight different aspects of international trade but do not accurately describe the primary purpose of tariffs. For instance, while decreasing the cost of imported goods would be beneficial for consumers, it contradicts the nature of tariffs, which are designed to increase costs. The facilitation of free trade agreements relates more to reducing barriers rather than imposing them, while standardizing pricing of goods involves different regulatory mechanisms and does not directly involve tariffs.

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