ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -Trade barriers include tariffs (taxes) on imports (and occasionally exports) and non-tariff barriers to trade such as import quotas, subsidies to domestic industry, embargoes on trade with particular countries (usually for geopolitical reasons), and licenses to import goods into the economy.

Detailed explanation-4: -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). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.