ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Quotas, exports
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Quotas, imports
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Tariffs, exports
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Tariffs, imports
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Detailed explanation-1: -The tariff (or “basic customs duty”) continues to be assessed on imports separately and has not been incorporated into the GST.
Detailed explanation-2: -A tariff is a tax on imports or exports of goods between countries. Tariffs are a form of regulation of foreign trade and a policy that taxes foreign products to encourage or safeguard domestic industry.
Detailed explanation-3: -Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result.
Detailed explanation-4: -Answer and Explanation: ‘Exports tariffs are used by countries when they believe an export’s price is lower than it should be’ is a true statement. Export tariffs are used when the country wants to limit the sale of domestically produced goods in foreign countries.
Detailed explanation-5: -Tax on imports is an example of Trade Barrier.