Question

Name the trade protection strategy which taxes imports.

• A. Tariffs
• B. Quota
• C. Administrative barriers
• D. Devaluation of currency

Answer 1

The correct option is A Tariffs

Tariffs work as a tax which is charged on the imports beyond a specified amount. Motive for this is to protect the domestic goods and economy in turn. Tariffs are preferred over quotas as they generate additional revenue for the Government.