Which one of the following is an example of a tariff?
Select one answer - Edexcel - GCSE Business - Question 2 - 2015 - Paper 1
Question 2
Which one of the following is an example of a tariff?
Select one answer.
A Commission on sales
B Tax on imports
C Quota
D Safety standards
(b) Outline one reas... show full transcript
Worked Solution & Example Answer:Which one of the following is an example of a tariff?
Select one answer - Edexcel - GCSE Business - Question 2 - 2015 - Paper 1
Step 1
Which one of the following is an example of a tariff?
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Answer
The correct answer is B Tax on imports. A tariff is specifically a tax levied on imported goods, which is designed to increase the cost of foreign products to encourage consumers to buy domestic alternatives.
Step 2
Outline one reason why Egypt might want to restrict free trade.
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Answer
One reason Egypt might want to restrict free trade is to protect its local industries. By imposing tariffs or trade barriers, the government can reduce competition from foreign companies, allowing domestic businesses to grow and sustain jobs. This protectionism can be crucial for developing economies that are trying to build their industrial base.
