Question

Luis, the owner of a shoe factory in panama, is unhappy due to a tax that the u.s. government has implemented on shoes exported from panama into the united states. the u.s. government says it has imposed the tax in order to protect u.s. shoe companies. this tax is an example of a tariff.

Answer 1

True. The U.S. government imposing a tax on a foreign shoe company in order to protect U.S. shoe companies is an example of a tariff. A tariff is a tax that is imposed on foreign companies to help protect domestic companies. The taxes are placed on goods and services within the countries.