Consider the following methods adopted by the government to protect goods produced in India from imports.
(i) Heavy taxes were levied on imported goods.
(ii) The maximum limit on the imports of a commodity by a domestic user was fixed.
Choose the correct answer.
Both (i) and (ii) are true
- Governments impose heavy import taxes (tariffs) to protect domestic industries from foreign competition.
- Import quotas are set to restrict the quantity of goods that can be imported, thereby supporting local production.
- These policies are known as protectionist measures and are commonly used to safeguard economic interests.
- High tariffs make imported goods expensive, encouraging consumers to buy domestic alternatives.
- Such measures help in job creation and economic stability but may lead to trade disputes with other countries.
Important Questions from Economy
When goods are produced by exploiting natural resources, it is an activity associated with:
A system in which local farmers were allowed to cultivate temporarily within a plantation is known as:
Which goods from India dominated the international textile markets before the age of mechanized industries?
Which type of farming is practiced in areas of high population pressure on land?
The major economic attribute for comparing countries is their:
