Question : Import tax is an example of which of the following?
Option 1: Foreign trade
Option 2: Trade Barrier
Option 3: Economic growth
Option 4: Globalisation
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Correct Answer: Trade Barrier
Solution : The correct answer is Trade Barrier.
Trade Barriers are instruments of policy that restrict the free flow of goods and services across borders. They are of two different types: tariff barriers and non-tariff barriers. Tariff barriers include permits, quotas, import taxes, embargoes, sanctions, etc. Non-tariff barriers consist of more regulatory requirements, SPS measures, etc.
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