ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a specific number of imports allowed.
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a cash grant or loan from the government to support the business.
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an official ban on trade.
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a tax on imports.
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Detailed explanation-1: -A tariff is a type of tax levied by a country on an imported good at the border. Tariffs have historically been a tool for governments to collect revenues, but they are also a way for governments to try to protect domestic producers. As a protectionist tool, a tariff increases the prices of imports.
Detailed explanation-2: -Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.
Detailed explanation-3: -Tax on imports is an example of Trade Barrier.
Detailed explanation-4: -What Is a Tariff? Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade barriers that raise prices and reduce available quantities of goods and services for U.S. businesses and consumers.
Detailed explanation-5: -In international trade: Tariffs. Similarly, an export duty, or export tax, is a tax imposed on commodities leaving a customs area.