A country wants to help its car companies compete with foreign competitors. It creates a tax on every foreign car imported into the country. Dealerships
selling foreign cars have to charge more to cover the cost of the tax, which
makes domestic cars cheaper by comparison.
This is an example of which type of trade barrier?
O A. Embargoes
B. Tariffs
C. Quotas
D. Subsidies

B. Tariffs

Explanation:

A tariff is a tax obligation imposed by the authorities on imports. This tax is also referred to as import tariffs and may apply to all imports or on selected goods. Tariffs serve two main objectives

The purpose of imposing the tax on imported vehicles is to allow local manufacturers to compete with imports. In this situation, the tariff is used as a protector of the local industry.

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