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30 April, 04:16

A charge of 15-20% was levied by the government of Cadmia on the value of automobile accessories imported from a neighboring country. This increased the price of those imported car accessories for the consumers in Cadmia. Which of the following instruments of trade policy is being used by the government of Cadmia?

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  1. 30 April, 06:41
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    Ad valorem tariff

    Explanation:

    An ad valorem tariff is charged as a set percentage of the value of the imported product.

    Ad valorem is Latin for "on value" or "in relation of value." The United States officially taxes an ad valorem tariff of 2.5 percent on imported vehicles.
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