Tax on imports is one type of trade barriers

Asked by admin @ in CBSE BOARD X viewed by 349 People

Answer this question... Tax on import is one type of trade barrier but government could also plays a limit on the number of goods that can be imported. This is known as quotas.. can you explain using the example of Chinese toys how quotas can be used as a trade...barrier do you think they should be used...NO SPAM...

Answered by admin @


Yes quotas can be used as trade barriers. If government regulates the import of chinese toys in the markets then this could improve the condition of local manufacturers as it became worse when chinese toys flooded the indian markets.
Due to low cost and new designs of chinese toys , traders were involved in their import as they were highly demanded and due to this the economic condition of large number of local producers worsened. But quotas can help to improve them and therefore they should be used.

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