A tariff is a
A. limit on the amount of goods the importing country will accept
B. tax levied by a government against imported products
C. total ban on imports
D. method of entering a foreign market through a licensing arrangement
E. boycott of imports by the steel industry of the U.S.
Answer: (B) A tariff, by definition, is a tax imposed on imports (B). Therefore, this is the correct answer. A quota is a quantitative restriction on the amount of goods that can be imported from a country (A). A boycott is defined as a total ban on imports (C). Franchising is defined as a mode of entering foreign markets through licensing arrangements (D). Finally, (E) is incorrect because it too discusses a boycott rather than a tariff.