In China, the price of imported Scotch is $30 per glass as opposed to Scotch from China, which is $3. Which of the following do you think accounts for the difference in price?

Question

Quizplus · Accepted Answer

The most likely reason for the difference in price is an import tariff, which is a tax on imported goods. The Chinese government may have imposed a high import tariff on Scotch from other countries to protect its domestic producers of alcoholic beverages. This tax increases the cost of imported Scotch, making it more expensive than domestic Scotch, which is not subject to the same tax.

In China, the Price of Imported Scotch Is $30 Per