Question

Hi guys......

A group of companies in India wishes to Port high quality ACs from South Korea but have to pay huge import tax on them which would make the ACs very expensive leading to decline their sales. Ascertain the role of import tax in this situation..!!​....plz don't answer ​

Answer 1

Explanation:

There are 4 main trade barriers namely

1)import tax 2)export tax 3)import duty 4)export duty

Here the AC which is being exported is very costly bcoz of additional import tax. It is very loss for the buyers of the AC s. TheAC which is expensive in south Korea is being exported. Bt shen it reaches here it becomes more expensive than it was earlier!