Foreıgn Trade Deneme Sınavı Sorusu #1405020
Which of the following is a disadvantage of tariff?
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A tariff provides revenue to government based on imported products. |
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A tariff can be levied to shield domestic companies. |
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A tariffs impedes with the concept of ‘free trade’ because it mainly focuses on the protection local industries. |
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A tariff may be used to raise the price of an exported product. |
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A tariff surges the price of the imported products, sometimes uplifting its status to that of a luxury product. |
The disadvantage of tariff is that it impedes with the concept of ‘free trade’ because it mainly focuses on the protection local industries. Free trade permits the market to set prices on the basis of supply, demand, productivity, and logistics, simply put, market determines the price. The remaining items are the advantages of a tariff.
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