What is a tariff?

Read the following claim.

Tariffs can weaken the relationships between countries.

Which selection from the article BEST supports the claim above?

• The impact of a tariff depends on the size of the country that imposes it.

• Therefore, both countries' trade policies can have a significant impact on the price of cocoa on global markets.

• Finally, the amount of trade in the product between the countries would decrease.

• For a "large" country, the benefits of a tariff are mixed. Buyers within the country face higher prices.

What the Text Says...

Which section from the article highlights one MAIN reason why most experts are against tariffs?

• "Two Kinds Of Tariffs"

• "Examining A Tariff's Impact"

• "Benefits And Costs"

• "Political Economy Of Tariffs"

Read the sentence from the introduction [paragraphs 1-2].

However, I believe it's important to first understand what a tariff actually is and does before we can determine whether Trump's new trade barriers are good or bad.

The author uses the word "determine" to mean:

• bring to an end

• cause to happen

• make a decision about

• be persistent about

Read the paragraph from the section "Two Kinds Of Tariffs."

A tariff, simply put, is a tax imposed on an imported good. There are two types of tariffs. A "unit" or specific tariff is a tax imposed as a fixed charge for each unit of a good that is imported, such as $300 per ton of imported steel. An "ad valorem" tariff is levied as a percentage of the value of imported goods, such as a 20 percent tariff on imported automobiles. Both tariffs act in similar ways.

Which of the following phrases from the paragraph provides a context clue to the meaning of the word "levied"?

• imposed on

• imported good

• each unit

• in similar ways

What is the opposite of a trade barrier?

• limitless trade

• free trade

• borderless trade

• quota