Which of the following most accurately reflects the role of tariffs in international trade?

Tariffs play a critical role in international trade by serving dual purposes. First, they are a significant source of revenue for governments, as the taxes imposed on imported goods contribute to national income. This revenue can be utilized for public services and infrastructure. Second, tariffs are implemented to protect domestic industries from foreign competition. By increasing the cost of imported goods, tariffs can encourage consumers to purchase domestically produced products, thereby supporting local economies and jobs.

The accurate reflection of the role of tariffs captures their ability to affect both economic policy and market dynamics, striking a balance between revenue generation and the protection of local businesses. Through these mechanisms, tariffs influence trade patterns and can lead to strategic economic outcomes for nations engaged in international trade.