When the government of Indonesia imposes a tax on imported electronics products to
help its young electronics industry compete in the global marketplace, it’s imposing
a/an _______ on foreign electronics products.
A. import quota C. embargo
B. protective tariff D. revenue tariff
my answer is C
The correct answer is B. protective tariff.
To determine the correct answer, we need to understand the different types of trade measures that a government can impose on imported goods.
1. Import quota: This refers to a limit on the quantity of a particular good that can be imported into a country. It does not involve imposing a tax on the imported goods.
2. Embargo: An embargo refers to a complete ban on trade with a specific country or a specific type of goods. It does not involve imposing a tax on imported goods.
3. Protective tariff: This is a tax imposed by a government on imported goods in order to make them more expensive relative to domestically produced goods. It is intended to protect and promote domestic industries by reducing competition from foreign imports.
4. Revenue tariff: A revenue tariff is a tax imposed on imported goods primarily to generate revenue for the government rather than to provide protection to domestic industries.
Given the information provided, the government of Indonesia is imposing a tax on imported electronics products to support its young electronics industry. This aligns with the purpose of a protective tariff, which is to shield domestic industries from foreign competition. Therefore, the correct answer is B. protective tariff.