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xenn [34]
3 years ago
7

Scenario:

History
1 answer:
Vedmedyk [2.9K]3 years ago
6 0

Tariff  type of tax was implemented by country Q

Explanation:

Tariff is the tax levied by one republic nation on the goods brought in from another country. There are two types of tariffs which are specific and add valorem tariffs. It is best for raising the revenue of the country form imports but it results in high consumer price of the products which are imported.

When a country imports the specific goods, then the internal indigenous industries which produce the similar goods may lose their value by reducing the competition.

In olden days cross border trade was viewed to be the zero game where one can total wealth out of tariffs or other country could face total loss. There are also many instances in past which created rivalry between countries due to increase in tariffs that restricted imports.

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