Widgets, Inc., based in the United States, makes small parts for the auto industry. Over the past couple of years, Widgets has laid off many workers due to auto industry outsourcing. The federal government has imposed tariffs to discourage outsourcing. This is called

Outsourcing to foreign markets can cripple domestic industries, increase local unemployment, and impose trade imbalance. To check excessive outsourcing, the federal government imposes tariffs. Such a trade restriction is considered necessary within the domestic economy. But it may be regarded as a restriction of free trade within the international community.

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Tundexi Tundexi · Answer 2 · 2022-02-04T12:45:57+01:00

The policy adopted by the federal government that imposed tariffs to discourage outsourcing is known as Protectionism policy.

A Protectionism policy are adopted or enforced to protect the domestic workers or industries against external bodies.

Hence, the policy adopted by the federal government that imposed tariffs to discourage outsourcing is known as Protectionism policy.