An import duty has the effect of all of the following except
A) reducing the number of units exported.
B) raising the price of the product in the importing nation.
C) reducing the number of units imported.
D) creating a trade restriction.
E) protecting a domestic industry from competition.

Question

Quizplus · Accepted Answer

An import duty is a tax on imported goods. It increases the price of the product in the importing nation, reduces the number of units imported, creates a trade restriction, and protects a domestic industry from competition. However, it does not have a direct impact on the number of units exported.

An Import Duty Has the Effect of All of the Following