Source Texts
Text
A tariff is a tax on imported goods intended to protect domestic producers of similar goods from international competition. Eliminating tariffs can lead to an influx of cheaper imported goods, lowering prices; in a place where domestic production is relatively expensive, this influx can suppress domestic production, as the country's consumers favor more cheaply produced imported goods over domestically produced ones. A student consults a table showing projected changes in production and average market prices of agricultural commodities in four countries in a tariff-elimination scenario. Based on the data, the student claims that compared with India and Russia, agricultural production in Argentina and the United States is likely relatively inexpensive.