Which of the following best describes the term "preferential tariff"?
A) The tariff applies only to luxury items.
B) The tariff limits the number of products that can be imported from particular countries.
C) Tax is placed on countertrades.
D) Tariff advantages are given to one country over others.

Question

Quizplus · Accepted Answer

A preferential tariff is a tariff advantage that is given to one country over others. It is a form of trade agreement that reduces or eliminates tariffs on certain products from specific countries. This is done to encourage trade and build stronger economic relationships between the countries involved.

Which of the Following Best Describes the Term "Preferential Tariff