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Q.

Which of the following is an example of trade barriers?


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a

Foreign Direct Investment

b

Tax on Income

c

Tax on Imports

d

All of the above 

answer is C.

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Detailed Solution

Tax on Imports is an example of a trade barrier.
These are the taxes that are levied on the importance of foreign goods. These are also called Import taxes. It is a trade barrier since it hampers and discourages trade between the countries. It can be seen during war times that the government increases the taxes on imports from a particular country to such an extent that the trade relations between the countries get halted.
 
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