Question

Why is ‘tax’ on imports known as a trade barrier? *Only 1 mark squestion*​

Answer 1

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TAX on import is known as a trade barrier, because some restriction has been set up.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.

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Answer 2

TAX on import is known as a trade barrier, because some restriction has been set up. ... The Indian government after independence had put barriers to foreign trade and foreign investment.