Practicing Success
Which of the following is NOT a reason to impose a tariff by a country? |
to protect domestic industry from subsidised or low-wage imports to ease a deficit on the balance of payments to raise government revenue none of the above |
none of the above |
Tariff : A tax on imports, which can be levied either on physical units, e.g. per tonne (specific) or on value. Tariffs may be imposed for a variety of reasons including: to raise government revenue, to protect domestic industry from subsidised or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments. Apart from the revenue that they raise tariffs achieve little good—they reduce the volume of trade and increase the price of the imported commodity to consumers. |