Question

Industrialized nation tariffs are higher on

	a.	Skilled labor intensive imports.
	b.	Unskilled labor intensive imports.
	c.	High technology imports.
	d.	Semiskilled labor intensive imports.

Answer 1

Answer- Correct option is-c-High technology imports.

Explanation-Let us first understand the structure of an industrialized nation and its tariff system-

An industrialized nation is one which has a bustling and blooming manufacturing sector characterised by mechanization, standardization and a little automation. A fully industrialized nation also has a very strong information technology, financial sector and government sector. It provides its factories, industries, investors and consumers through its policies.

The tariff system on an industrialized nation is called 'tariff escalation'. Tariff escalation implies highest import duties on finished products (manufactured goods), high import duties on semi-processed products and lower import duties on raw materials, primary products. This strategy/policy is practiced to protect domestic processing/ manufacturing industries and discourages the development of processing activity from foriegn industries.

As we know, manufactured goods are finished products which include electrical equipment, transportation equipment, including trains, cars, trucks, buses, subways and airplanesdurable medical equipment, sporting goods, various food products, gasoline, computers, electronic products, machines etc. Production and processing of these goods requires high technology and significant resources and research.