Question

A charge of 12–18 percent is levied by the government of a foreign nation on the value of automobile accessories imported from a neighboring country. This increased the price of those imported car accessories for the consumers. This foreign nation is using a(n) _____.

Answer 1

Answer:

The foreign nation is using a tariff

Explanation:

Tariff can be described as a tax on imports. It is a duty paid on imports which are levied by domestic government in order to protect infant or new domestic industries. It is imposed in order to increase the prices of imported goods and make them less desirable or less competitive.

The charge of 12-18% increases the price of the imported car accessories or the consumers in order to favor the domestic companies manufacturing car accessories and make them more desirable and cheaper to the domestic consumers.