ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -These include specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs. A specific tariff is a tax imposed directly onto one imported good and does not depend on the value of that imported good.

Detailed explanation-2: -A specific tariff is levied as a fixed charge per unit of imports. For example, the US government levies a 51 cent specific tariff on every wristwatch imported into the US. Thus, if 1000 watches are imported, the US government collects $510 in tariff revenue.

Detailed explanation-3: -The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home).

Detailed explanation-4: -Specific tariffs. Ad valorem tariffs. Licenses. Import quotas. Voluntary export restraints. Local content requirements.