GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which trade policy results in the government levying both a specific tariff and an ad-valorem tariff on imported goods
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Nominal tariff
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Effective tariff
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Revenue tariff
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Compound tariff
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Explanation:
Detailed explanation-1: -Compound tariff results in the government levying both specific and ad-valorem tariffs on imported goods.
Detailed explanation-2: -Ad Valorem Tariffs An example of an ad valorem tariff would be a 15% tariff levied by Japan on U.S. automobiles. The 15% is a price increase on the value of the automobile, so a $10, 000 vehicle now costs $11, 500 to Japanese consumers.
Detailed explanation-3: -An ad valorem tariff is a tariff levied as a certain percentage of a good’s value (e.g., 10% of the value of an imported car).
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