Suppose a Chinese clothing manufacturer wants to sell a shirt to a U.S.customer,but the U.S.government adds a tax of $.50 to the price of the shirt at the U.S.border.This is an example of:

Question

Quizplus · Accepted Answer

A unit tax tariff is a tax imposed on each unit of the imported good, in this case, each shirt. This is different from an ad valorem tariff, which is a tax imposed as a percentage of the value of the imported good. A quota is a limit on the quantity of the imported good, and dumping is the practice of selling goods at a lower price in a foreign market than they are sold in the domestic market.

Suppose a Chinese Clothing Manufacturer Wants to Sell a Shirt