What is a tariff ?
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Answer: C. Both of them
Explanation
Tariffs are official taxes or customs duties enforced by sovereign governments on cross-border merchandise. Governments levy tariffs on imported goods to protect domestic industries from foreign market competition. Export tariffs are also occasionally levied by governments to retain domestic resources or manage foreign sales. Protectionism involves using tariffs and trade quotas to restrict foreign imports and favor domestic producers. Tariffs generate government revenue while simultaneously raising the market price of foreign goods. Trade agreements often aim to reduce or eliminate tariffs to promote international commerce and globalization.
Consumers often pay higher prices for imported electronics and clothing due to government-imposed tariff rates. Trade wars frequently begin when competing nations impose retaliatory tariffs on each other's key export goods. Developing countries sometimes use tariffs to nurture nascent domestic industries until they become globally competitive. Option A is incomplete because tariffs apply to both imports and exports depending on national policy. Option B is narrow-minded since it ignores the more common application of tariffs on imported merchandise. Option D is incorrect because tariffs definitely exist and are widely used in international trade.
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