Question

Governments levy import duties which vary with the _______ of Commodities imported

Answer 1

Answer:

Governments levy import duties which vary with the Tariff of Commodities imported.

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Answer 2

Governments levy import duties which vary with the Tariff of Commodities imported.

Explanation:

• A tariff is a tax between sovereign states on the imports or exports. It is a type of foreign trade control and a strategy that taxes foreign products to encourage or defend the domestic industry. States have historically used these as a source of income.
• Tariff incentives are unequal. Because a tariff is a levy, when goods reach the domestic market, the government will see increased revenue. In reality, domestic industries benefit from a drop in inflation, because import prices are artificially inflating.

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