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The country of Argonia imposes an ad valorem tariff of 10 percent on 1 million tons of rice imports, after which an out-of-quota tariff of 80 percent is applied. Which of the following trade policy instruments is Argonia using?

A. Subsidy
B. Tariff rate quota
C. Voluntary export restraint
D. Tariff ceiling
E. Local content requirement

Respuesta :

Answer:

B. Tariff rate quota

Explanation:

B. Tariff rate quota - it is comprised of two policy instrument i.e. import quota and tariff to control and regularized imports.  

Tariff rate quota implies a limitation on the number of goods that import from a foreign country.  it is applied for certain period of time.

In the same way, Argonia imposes a 10% tariff on imports of 1 million rice.

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