Question

Nigeria has a new industry that builds tractors for agriculture. To protect this new industry from competition by lower priced foreign built tractors the Nigerian government would use what type of economic trade barrier to raise the price of imported tractors?

Answer 1

Answer: limit importation of foreign based tractors or place extra clearing charges at port

Explanation:

One of the ways the ways most systems do to help trade is by encouraging their own goods while they gradually restrict importation of that particular goods. They do this to boast the sales the locally made item would have in the market and encourage more people to buy the locally made item. By limiting or making it difficult for imported tractors to be sold cheap. Another way is by increasing the service charge at the sea port for these imported tractors, this will make importers increase the price of their goods.