![]() Government Intervention. Import tariffs add to the price of imported goods.Taxes. When government sales taxes, such as value-added tax (VAT), are high in one country relative to another, this means goods will sell at a relatively higher price in the high-tax country.Imported goods will thus sell at a relatively higher price than the same goods available from local sources. Transport Costs. Goods that are not available locally will need to be imported, resulting in transport costs.
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