Question

Read the given extract and answer the following questions.

Suppose the Indian government puts a tax on import of toys. What would happen?

Those who wish to import these toys would have to pay tax on this. Because of the

tax, buyers will have to pay a higher price on imported toys. Chinese toys will no

longer be as cheap in the Indian markets and imports from China will automatically

reduce. Indian toy-makers will prosper. Tax on imports is an example of trade barrier.

It is called a barrier because some restriction has been set up. Governments can use

trade barriers to increase or decrease (regulate) foreign trade and to decide what

kinds of goods and how much of each, should come into the country. The Indian

government, after Independence, had put barriers to foreign trade and foreign

investment. This was considered necessary to protect the producers within the

country from foreign competition. Industries were just coming up in the 1950s and

1960s, and competition from imports at that stage would not have allowed these

industries to come up.

Answer the following MCQs by choosing the most appropriate option

Q.26.1 The passage given above relates to which of the following options?​

Answer 1

Answer:

the options...

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