canada charges special taxes on U.S cheese and butter brought across the U.S Canadaian Border. What type of trade barrier is this?
A Embargo
B Tarrif
C Opportunity cost
D quota
B Tariff
The type of trade barrier that Canada imposes on U.S cheese and butter brought across the U.S-Canadian border is a tariff.
The trade barrier in question is B) Tariff.
A tariff is a tax imposed on imported goods, usually to restrict the flow of those goods into the domestic market or protect domestic industries. In this case, Canada charges special taxes on U.S cheese and butter brought across the U.S-Canadian border, which acts as a trade barrier.
To determine the answer, you can understand the different types of trade barriers and their characteristics:
A) Embargo - An embargo is a complete ban on the import or export of certain goods or services to or from a specific country. It is not applicable in this scenario since Canada does not completely ban the import of U.S cheese and butter.
B) Tariff - A tariff is a tax imposed on imported goods. This is the correct answer as Canada is imposing special taxes on U.S cheese and butter.
C) Opportunity cost - Opportunity cost refers to the cost of choosing one option over another in terms of benefits foregone. It is not directly related to trade barriers.
D) Quota - A quota is a limit on the quantity or value of goods that can be imported or exported within a specific time period. It is not applicable in this scenario since the question mentions special taxes and not a specific limit on the quantity or value of imports.
Therefore, the correct answer is B) Tariff.