A tax on imported goods is an example of which category?
A tax on imported goods is an example of which category?
Answer: Trade Barrier
A trade barrier refers to any restriction imposed by a government to regulate international commerce and protect domestic industries. A tax on imports known as a tariff increases the cost of foreign goods making them less competitive in the local market. While tariffs can encourage local production they may also raise consumer prices and reduce product variety. Trade barriers include quotas subsidies and import bans alongside tariffs. They are often used to safeguard national security support infant industries and balance trade deficits but can also lead to retaliation and reduced global trade cooperation.
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