Tariff Escalation to Foster Industrialization in Exporter Nations

Steps:

• Tariffs rise with processing level, making raw fruit imports cheaper than processed ones.
• This structure discourages EU imports of value-added tropical products.
• It incentivizes tropical countries to process fruits locally for higher export value.
• Result: Builds manufacturing capacity in those developing economies.

Why C is correct:

• Tariff escalation policy promotes industrialization by protecting domestic processing in exporting countries, per WTO-recognized trade preferences for development.

Why the others are wrong:

• A: Higher tariffs on processed goods reduce, not encourage, imports.
• B: EU lacks tropical fruit production, so tariffs target foreign, not domestic, manufacturing.
• D: Incomplete option provides no viable reasoning.

Final answer: C