Question

Which of the following defines a compound tariff? A fixed amount of money per unit combined with a fixed percentage of the value of the imported product A fixed percentage of the value of the imported product as it enters the country A fixed amount of money per unit of the imported product Which of the following tariffs provide protection to both domestic manufacturers and the finished goods industry? Check all that apply. An ad valorem tariff A compound tariff A specific tariff

Answer 1

Answer:

A fixed amount of money per unit combined with a fixed percentage of the value of the imported product .

Explanation:

The composite tariff has always been a mixture of both the basic tax duty and the value tariff. The composition of the compound tariff requires a particular duty for each portion of the product and a part of the import duty. it does not only improve sales elasticity of the firm, but also provide further additional protection for domestic businesses.