Ad valorem tariffs are a. the same as import quotas. b. import taxes calculated as a fixed charge for each unit of imported goods. c. import taxes calculated as a fraction of the value of the imported goods. d. import taxes stated in ads in industry publications.

Question

Hezekiah Chen

Business

27 January, 07:33

Ad valorem tariffs are a. the same as import quotas. b. import taxes calculated as a fixed charge for each unit of imported goods. c. import taxes calculated as a fraction of the value of the imported goods. d. import taxes stated in ads in industry publications.

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Answers (1)

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Luciana Lang · Answer 1

Option (c) is correct.

Explanation:

Ad valorem tariffs refers to the tariff which are used to restrict the imports from the other country and protect the domestic producers. It is calculated as a fraction of the total value of the goods imported.

For example: Thee United States imported some quantity of automobiles from Thailand. Hence, the ad valorem tariff is 3% of the total value of automobiles imported from the Thailand.