One on the usefulness of import tariff on Imported goods is the _______?

Step 1: Analyze the question The question asks for a usefulness (benefit) of an import tariff. A tariff is a tax placed on goods brought into a country from abroad.

Step 2: Explain the concept Because a tariff is a tax on imports, it raises the price of foreign goods in the local market. This has several effects:

• Imported goods become more expensive, so local products become more competitive.
• Demand for imports falls, which reduces the quantity entering the country.
• The government earns revenue from the tax.
• Young local industries (infant industries) get time to grow without being crushed by cheaper, established foreign competitors.

Step 3: Evaluate each option

• A. Encouragement of importation from abroad: Wrong. Tariffs discourage imports, they do not encourage them.
• B. Multiplication of foreign goods in local markets: Wrong. Higher costs reduce the volume of foreign goods, not increase it.
• C. Protection of infant industries: Correct. This is the classic argument for tariffs. Nigerian examples include protecting new local manufacturers of textiles, cement, or assembled goods from cheap foreign competition.
• D. Saving of money in foreign accounts: Not the best answer. Reduced imports may slightly conserve foreign exchange, but the phrasing is vague and it is not the standard textbook usefulness of a tariff. Protection of local industry is the main purpose.

Step 4: Answer The correct option is **C.

Exam tip: Remember "Tariff = Tax on imports = Protects local producers." Whenever a question asks about the benefits of a tariff, think protection of local/infant industries and government revenue. Any option suggesting more imports is almost certainly wrong.

(Note: this question is really Economics/Commerce content rather than Geography, but the reasoning is the same.)