Which of the following is NOT a reason marketers might consider tariffs?

Marketers often consider tariffs for several strategic reasons, including the desire to reduce foreign competition, support local industries, and balance trade deficits. Each of these rationales is tied to economic policies that can influence market dynamics.

Reducing foreign competition is a common goal of implementing tariffs. By imposing higher taxes on imported goods, domestic products become relatively cheaper, encouraging consumers to purchase local offerings rather than foreign alternatives.

Supporting local industries is another critical reason, as tariffs can help protect emerging or struggling domestic businesses from international competition. This protectionism allows local industries to establish themselves and grow without being overshadowed by more established foreign companies.

Balancing trade deficits is further justification for the use of tariffs. If a country is importing more than it is exporting, tariffs can help reduce the volume of imports, leading to a more favorable balance of trade.

However, increasing product variety is not a typical reason for implementing tariffs. In fact, tariffs can often have the opposite effect by making imported goods more expensive and less accessible, potentially leading to a reduction in overall product variety in the market. Instead of promoting diversity, they can limit consumer choices, as higher prices may deter some manufacturers from exporting their goods to the tariff-imposing country. Thus, it is clear that increasing product variety