A tariff placed upon a product in order to offset a foreign export subsidy is called
A) an antidumping duty.
B) a countervailing duty.
C) a predatory duty.
D) a specific duty.

Question

Quizplus · Accepted Answer

A countervailing duty is a tariff placed upon a product in order to offset a foreign export subsidy. This helps to ensure fair competition in the international market. Antidumping duty is a tariff placed to counteract the sale of a product at a lower price in the importing country than the price charged in the exporting country. Predatory duty is not a recognized term in trade policies. Specific duty is a tariff based on the weight or quantity of the imported product, not related to export subsidies.

A Tariff Placed Upon a Product in Order to Offset