Under a(n)_____,a lower tariff rate is applied to imports within the quota than those over the quota.

Question

Quizplus · Accepted Answer

Under a tariff rate quota, a lower tariff rate is applied to imports within the quota than those over the quota. This is done to encourage importing within the quota limit, while discouraging importing beyond it. In contrast, a voluntary import restraint is a limit on the amount of a product that can be imported, usually voluntarily imposed by exporting countries, and does not involve different tariff rates. Import duty and quota rent refer to different types of taxes, and import quota refers to a limit on the quantity of goods that can be imported, without necessarily involving different tariff rates. Therefore, A) tariff rate quota is the best choice for the given statement.

Under A(n)_____,a Lower Tariff Rate Is Applied to Imports Within