A group of companies in India wishes to import high quality ACs from South Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline their sale. Ascertain the role of the import tax in this situation.

A group of companies in India wishes to import high quality ACs from S

1.	A group of companies in India wishes to import high quality ACs from South Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline their sale. Ascertain the role of the import tax in this situation.
Answer» The Import tax is acting as a Trade Barrier.

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A group of companies in India wishes to import high quality ACs from South Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline their sale. Ascertain the role of the import tax in this situation.

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