Match the LIST-I with LIST-II
LIST-I
TRADE TARIFFLIST-II
ExplanationA. Specific Tariff I. Fixed percentage of the value of the commodity B. Ad valorem Tariff II. Fixed amount of money per unit C. Compound Tariff III. Duty fixed to bring the price of imported commodity to the level of domestic support price D. Variable Tariff IV. Combination of Ad valorem and Specific Tariff
Choose the correct answer from the options given below:
Understanding Trade Tariffs: Matching Types and Explanations
This question requires matching different types of trade tariffs listed in LIST-I with their corresponding explanations provided in LIST-II. Let's break down each type of tariff:
Analyzing Tariff Types
We need to understand the definition of each tariff type to correctly match them.
- Specific Tariff: This type of tariff is a fixed charge imposed per unit of an imported product. For example, a specific tariff might be '$10 per kilogram' of imported cheese.
- Ad valorem Tariff: This tariff is calculated as a percentage of the value of the imported goods. For instance, a 20% ad valorem tariff on a car means the duty is 20% of the car's declared value.
- Compound Tariff: As the name suggests, this tariff is a mix of both specific and ad valorem tariffs. It combines a fixed charge per unit with a percentage of the value.
- Variable Tariff: This tariff's rate is not fixed and can change. It's often used to adjust the price of imported goods to a predetermined level, typically to protect domestic producers. For example, if the world price of a commodity falls, the variable tariff increases to keep the landed price at the desired support level.
Matching Lists for Trade Tariffs
Based on the definitions above, we can match LIST-I with LIST-II:
- A. Specific Tariff matches with II. Fixed amount of money per unit.
- B. Ad valorem Tariff matches with I. Fixed percentage of the value of the commodity.
- C. Compound Tariff matches with IV. Combination of Ad valorem and Specific Tariff.
- D. Variable Tariff matches with III. Duty fixed to bring the price of imported commodity to the level of domestic support price.
Correct Option Identification
The correct matching derived is A-II, B-I, C-IV, D-III. Now, let's find the option that reflects this matching:
Comparing our matches with the given options:
- A-I, B-II, C-III, D-IV
- A-II, B-I, C-IV, D-III
- A-III, B-IV, C-II, D-I
- A-IV, B-III, C-II, D-I
Option 2 perfectly aligns with our analysis.
Summary of Tariff Matching
Here is a summary table of the correct matches:
| LIST-I Item | LIST-II Explanation |
|---|---|
| A. Specific Tariff | II. Fixed amount of money per unit |
| B. Ad valorem Tariff | I. Fixed percentage of the value of the commodity |
| C. Compound Tariff | IV. Combination of Ad valorem and Specific Tariff |
| D. Variable Tariff | III. Duty fixed to bring the price of imported commodity to the level of domestic support price |
Therefore, the correct answer is the option that lists these matches.
Important Questions from International Trade
Consider the following statements about the international financial sources :
I. A Global Depository Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign country.
II. A GDR is very similar to American Depository Receipt (ADR).
Select the correct option.
Which of the following documents is not required for obtaining export license?
_________ was set up with prime objective of professionalizing the country’s foreign trade management by providing training, research and data dissemination.
Which one of the following does not fall within the ambit of WTO operations ?
The following statements relate to Restrictive Trade Practices (RTP). Choose the correct code for the statements being correct or incorrect.
Statement I: Often the low price is the result of the predatory pricing strategy; prompting selling at prices below cost.
Statement II: This is done with an aim to drive out existing competitors because predatory pricing is a restrictive trade practice.
