A charge of 15-20% was levied by the government of Cadmia on the value of automobile accessories imported from a neighboring country.This increased the price of those imported car accessories for the consumers in Cadmia.Which of the following instruments of trade policy is being used by the government of Cadmia?

Question

Quizplus · Accepted Answer

The government of Cadmia is using an ad valorem tariff, which is a specific percentage of the value of the imported goods. The charge of 15-20% is a clear indication of an ad valorem tariff.

A Charge of 15-20% Was Levied by the Government of Cadmia