QUESTION IMAGE
Question
what type of restriction does a country place on international trade when it charges a high tax on an import from another country to help a competing domestic industry thrive?
a quota
b embargo
c revenue tariff
d protective tariff
Brief Explanations
To solve this, we analyze each option:
- Option A (quota): A quota is a limit on the quantity of imports, not a tax, so A is incorrect.
- Option B (embargo): An embargo is a complete ban on trade with a country, not a tax on imports, so B is incorrect.
- Option C (revenue tariff): A revenue tariff is mainly for raising government revenue, not protecting domestic industries, so C is incorrect.
- Option D (protective tariff): A protective tariff is a tax on imports designed to protect domestic industries from foreign competition, which matches the description in the question.
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D. protective tariff