Transport costs:

Question

Transport costs:

Quizplus · Accepted Answer

Transport costs increase the final price of imported goods in the importing country, as they have to bear the extra cost of transportation. This can make the imported goods more expensive compared to domestically produced goods, and thus might discourage imports. On the other hand, transport costs don't affect the price of goods in the exporting country as they are already sold at the market price, and the exporter arranges and pays for transportation separately. Therefore, option A is the correct answer.

Transport Costs