Question

Which out of the following is an example of a trade barrier? (a) Foreign investment (b) Delay or damage of goods (c) Tax on imports (d) None of these

Answer 1

THE RIGHT OPTION IS {C} TAX ON IMPORTS

Answer 2

Option C I.e Tax on imports is the correct answer.

The tax which is lieved on the foreign goods at their entry in a country is referred to as Import Tax or tax on imports. It is thus one of the example of trade barrier as it hampers the trade between the countries or states. At times the import tax is so much high that the trade relations between the countries is halted.