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The correct answer of the given question above would be taxing imported goods to help domestic businesses. The action that a government might take if a nation has high levels of imports would be taxing imported goods to help domestic businesses. Taxing of imported goods would prevent competition between the prices of the domestic products. Hope this answer helps.

Answer:

Putting tariffs on the imports of the items of trade.

Explanation:

  • A tariff or tax os means to restrict the item or commodities of import and these are done to create a balance between the exports and to protect the home countries' domestic markets from foreign competition.
  • they can also be of various types like the Ad valorem tariffs, Licenses., the Import quotas., the Voluntary export restraints, and the local content requirements.
  • David Ricardo thus gave the principle of the comparative advantage as the product of two-nation are better than those of the others they can thus be competing in the market and hence countries should then take the commodities.
  • Thus by imposing the custom duties, infant industries can be saved and also helps to lower the actual cost of the items of import that may be dumped by the other countries such as China.