ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Colombian customs can detain shipments indefinitely because of improper tariff schedule classification, incorrect address, or even simple typing errors. When mistakes are made by the exporter or importer, the goods may be refused entry into Colombia and be returned at considerable expense to the exporter or importer.

Detailed explanation-3: -These four main types of trade barriers include subsidies, anti-dumping duties, regulatory barriers, and voluntary export restraints.

Detailed explanation-4: -Answer: Tax on imports is known as a trade barrier because it increases the price of imported commodities.