Question

Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. However, the American government passed a taxation law that stated that a tax of 4% would be levied on all electronic imports. In this scenario, the American government imposed a(n) _____.

Answer 1

The answer is tariff

Step-by-step explanation:

One of the obstacle standing in the way of global trade is imposition of tariff by the importing country government.

Tariff is the tax imposed on imported items payable to the customs and excise authority in the country of import such as U.S customs.

The importer of the goods imported are initially responsible for the payment of tariff with the possibility of passing it on to consumers depending on price elasticity of demand.