ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws
A country imposes a tax on goods entering its territory from abroad, in order to make them dearer than locally produced goods. What is this measure called?
The measure is a tariff, which is a tax charged on imported goods that raises their price relative to domestic products. A quota limits quantity and an embargo bans trade altogether, so neither describes a tax on imports.
- AA tariffCorrect
- BA quota
- CAn embargo
Explanation
A tariff is a tax on imports. A quota limits the quantity of goods allowed in, and an embargo is a ban on trade with a particular country or of particular goods, so neither matches a tax.
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