Why is ‘tax’ on imports known as trade barrier? Why did the Indian government impose barriers on foreign trade and foreign investments after independence? Give three reasons.
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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. ... Competition from imports at that stage would not have allowed these industries to develop and grow
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Answer:
Tax on imports goods known as trade barriers because restriction has been set up for import goods from foreign companies by the government . The Indian government impose trade and foreign investments after independence because of following reasons ; To protect the producers within the country from foreign competition .
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