Question

A group of companies in India wishes to import high quality ACs fro South Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline in their sale. Ascertain the role of import tax in this situation.

Answer 1

In this situation , import tax is acting as a trade barrier

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Answer 2

Here the Import tax plays a role of barrier in trade of the AC's.
As the selling price of AC's increase in India due to increase in import tax ....there will be decline in trade or business of the group of companies Please mark it as brainliest if it is useful for u...