Question

Under a preferential duties system, goods imported from a country outside the preferred group are subject to a higher tariff.

a. True.
b. False.

Answer 1

Answer:

The statement is: True.

Explanation:

The preferential duties system or simply called preferential tariffs is an approach to impose lower taxes on countries that collide and come into a trade agreement. Some countries benefit from that pact but the countries outside the agreement are typically affected since they are charged higher levies.