Nigeria exports cocoa worth ₦200 million to Country Y and offers a rebate of 5 % on the export value. It also imports cars from Country X worth ₦150 million and imposes a tariff of t % on these imports. After applying both measures, the net trade balance (exports minus imports) shows a surplus of ₦45 million.
(a) Determine the tariff rate t (as a percentage).
(b) Which foreign‑policy objective is most directly pursued by imposing this tariff?

Question

Nigeria exports cocoa worth ₦200 million to Country Y and offers a rebate of 5 % on the export value. It also imports cars from Country X worth ₦150 million and imposes a tariff of t % on these imports. After applying both measures, the net trade balance (exports minus imports) shows a surplus of ₦45 million. 
(a) Determine the tariff rate t (as a percentage). 
(b) Which foreign‑policy objective is most directly pursued by imposing this tariff?

Accepted Answer

10%; Protection of domestic industry

Waec Model Questions Vol1 2024 Government Question 50

Answer Options

About This Question

Master the Exam!