SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment
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Disinvestment
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Trade barrier
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Privatization
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Detailed explanation-1: -The correct answer is Trade Barrier. Tax on import is an example of a Trade Barrier. Trade barriers are restrictions induced by the government on international trade. The barriers can take many forms, including the following: Tariffs, Import quotas, Import licenses, etc.
Detailed explanation-2: -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-3: -Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas.