ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tariffs
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services
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imports
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economies
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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). 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.
Detailed explanation-2: -An example of a tariff would be a tax on a good imported from another country.
Detailed explanation-3: -Trade barriers include any policies and regulations that prevent you from trading goods. Barriers can include tariffs, labelling requirements and local content requirements.
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. 10-Aug-2022