Trippi is concerned about the issue of tariffs because Golden Island has relatively high tariffs on capital goods. Trippi states: Golden Island will benefit from continuing to protect domestic capital goods by maintaining its relatively high tariff on non-domestic capital goods. High tariffs have little impact on foreign direct investment (FDI), and they generate revenue for the government. Trippi’s statement regarding tariffs is best described as:
A
correct.
B
incorrect, because high tariffs support increases in FDI.
C
incorrect, because eliminating high tariffs on manufactured goods will increase Golden Island’s physical capital and contribute to higher productivity.
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不是很明白B哪里错了，以及C是教材原话吗？请老师解答，谢谢。
