A group of companies in India wishes to import high quality ACs from South Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline their sale. Ascertain the role of the import tax in this situation.
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Answered by
557
The role of import tax in this situation is acting as a trade barrier.
Trade barrier refers to the imposition of tax on the import of goods from foreign countries. The Indian government has put barriers to foreign trade and foreign investment after independence.
The objectives were :
1. To protect the domestic producers from the following competition.
2. To provide opportunity to new industries to develop their position in the market.
3. To control the quantity of imports in the country.
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Hope this will help you...
Trade barrier refers to the imposition of tax on the import of goods from foreign countries. The Indian government has put barriers to foreign trade and foreign investment after independence.
The objectives were :
1. To protect the domestic producers from the following competition.
2. To provide opportunity to new industries to develop their position in the market.
3. To control the quantity of imports in the country.
==================================================================
Hope this will help you...
harshjohar:
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Which chapter?
Sorry wrong place
Answered by
22
Acting as a trade barrier and local companies are developing.
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