Question

An example of a(n) _____ is when the U.S. charges Mexico a tax on tomatoes imported into the U.S. as a way to keep those prices higher than domestic tomato prices. Group of answer choices tariff quota export restraint agreement trade agreement

Answer 1

This is an example of Tariff

Step-by-step explanation:

A tariff is a type of government tax that are being imposed on imports or exports between sovereign states. It is one of the various mechanisms for regulating foreign trade and it is also a policy that taxes foreign or imported commodities just to encourage or protect the interest of the domestic industry. States have usually utilized tariff taxes as a source of income.

Answer 2

This is an example of a Tariff

Step-by-step explanation:

A Tariff is a tax imposed on the importation of a commodity into a country.

If the US demands that a fee is paid to the government for every tomato coming from Mexico, this fee will be called the tariff that Mexico pays to the US government.

Tariffs serve as forms of regulation of foreign trade and help maintain stability in prices of domestic products within the country.