In order to stimulate its local textile economy and promote the production of cotton, something that has traditionally been imported, a country decides to charge the importing agency a certain percentage of the value of the item being imported. By doing this, the government seeks to make such imported products more expensive and thus unattractive. This is an example of a(n) .

Question

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The government's action of charging the importing agency a certain percentage of the value of the item being imported is an example of a tariff. Tariffs are taxes levied on imported goods to make them more expensive and thus less attractive compared to domestically produced goods. The purpose of the tariff in this scenario is to stimulate the local textile economy and promote the production of cotton, which has traditionally been imported.

In Order to Stimulate Its Local Textile Economy and Promote