A(n)________ is calculated to offset the advantage an exporter receives from a subsidy.
A) compound tariff
B) export promotion
C) countervailing duty
D) substitution tariff

Question

Quizplus · Accepted Answer

Countervailing duty is a tariff that is levied on imported goods to offset the benefits given to the exporter by its government subsidies. It is calculated to bring the price of the imported product in line with the price of domestically produced goods, prohibiting unfair competition for domestic producers. A compound tariff is a combination of an ad valorem tariff and a specific tariff on imports, while an export promotion is a government policy that encourages and supports companies to export their goods to foreign markets. A substitution tariff is a type of tariff where an imported product is replaced by a locally produced substitute.

A(n)________ Is Calculated to Offset the Advantage an Exporter Receives