What is a charge that businesses pay to the government for importing and exporting goods?

• A. Fees
• B. Levies
• C. Tariffs
• D. Taxes

Answer: (C)

The charge that businesses pay to the government for importing and exporting goods is termed tariffs. Tariffs are specifically designed as taxes imposed on goods that cross international borders, and they serve several purposes. Primarily, tariffs can protect domestic industries by making imported goods more expensive compared to local products, thereby encouraging consumers to purchase from domestic vendors. They can also generate revenue for the government.

While fees, levies, and taxes may refer to various financial charges imposed by the government, they do not specifically relate to the context of international trade in the same way that tariffs do. Fees are generally associated with services provided, levies can refer to a broader category of charges, and taxes typically refer to general charges on income or property rather than specifically on imported and exported goods. Understanding tariffs in the context of international trade is vital for grasping how governments manage trade and its impact on the economy.