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JAMB Commerce 1994 Question 13

Question 13

Foreign Trade

Governments impose import duties for the following reasons EXCEPT

  1. A.to raise revenue for other services
  2. B.to act as a retaliatory measure against other governments
  3. C.to discourage the redistribution of income at home
  4. D.to protect home industries from external competition.
Show the answer and explanation

Answer: C (to discourage the redistribution of income at home)

Explanation

Import duties raise revenue, protect local industries and can be used to retaliate; discouraging redistribution of income is not a reason for them.