Asked by Emily Hines on May 23, 2024
Verified
A legal limit on the amount of a commodity that can be imported is known as:
A) an ad valorem tariff.
B) an import quota.
C) an import concession.
D) an import substitution.
E) a specific tariff.
Specific Tariff
A fixed fee imposed on imported goods based on quantity, such as units, weight, or volume, rather than value.
Import Quota
A government-imposed limit on the quantity of a specific good that can be imported into a country within a given timeframe.
Ad Valorem Tariff
A tax imposed on imported goods, calculated as a percentage of the value of the imports rather than a fixed rate.
- Identify the distinctions among the diverse forms of trade limitations and their intentions.
Verified Answer
SN
Sandeep NagreMay 24, 2024
Final Answer :
B
Explanation :
An import quota is a legal limit set on the amount of a particular commodity that can be imported. An ad valorem tariff is a tax on imported goods based on their value, a specific tariff is a fixed tax per unit of a commodity, an import concession is a reduction in tariff rates for certain goods and an import substitution is a policy that aims to reduce imports by promoting domestic production.
Learning Objectives
- Identify the distinctions among the diverse forms of trade limitations and their intentions.