WBCS.LIVE practice question

What is the purpose of ‘customs duty’ in international trade?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. To encourage unlimited imports
  2. To protect domestic industries by taxing imports
  3. To standardise products internationally
  4. To regulate the export of goods

Correct answer and explanation

Correct answer: To protect domestic industries by taxing imports