ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Japan is allowed to send as many electronic products to the U.S. as they want.
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The U.S. freely trades with other countries with no restrictions.
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A high tax is placed on all diamonds received from Africa.
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U.S. puts a limit on the number of Toyota’s imported from Japan
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Detailed explanation-1: -What Is an Example of a Tariff? An example of a tariff would be a tax on a good imported from another country. For example, a 3% tariff on corn would be a 3% tax added to the cost of corn paid by any domestic importer of corn from a foreign country.
Detailed explanation-2: -The correct answer is “c. The U.S. imposes a tax on sugar imported from Brazil.” This is the only answer choice that involves a tax being placed on an import. A tariff is one of the most common trade barriers, and it is a tax on an import.
Detailed explanation-3: -What is an example of a tariff? An example of a tariff could be a tariff on steel. This means that any steel imported from another country would incur a tariff-for example, 5% of the value of the imported goods-paid by the individual or business importing the goods.
Detailed explanation-4: -A specific tariff is levied as a fixed fee based on the type of item, such as a $500 tariff on a car. An ad-valorem tariff is levied based on the item’s value, such as 5% of an import’s value.