International trade 
22.10.2010
The world of international trade is a political one. It's also a complicated one. Carol Scheunemann create a test on the topic of trade and logistics for Business Spotlight 6/2010 . Learn some more expression here online, so you can join in discussions on trade topics.
COMMENTS
Dear Ms Capras,
I would like to raise a question on number two.
"2. We wanted to import some of the machinery, but the ______ on these goods made them so much more expensive."
My understanding of the two terms tariff and duty is as follows.
- A tariff (protective tax) is rare and always protectionist.
- The duty (customs tax) is common to collect VAT on imported goods.
Isn't the missing word in the above exercise tariff instead of duty?
Best regards,
Uwe Kindsvogel
Thank you for your feedback.
Tariff and duty are often interchangeable - meaning that they can both be used in similar situations.
In question two, we are really talking about the "actual money to be paid", which we refer to as duty. The duty that is paid is often according to a tariff that has been set. Later on in the test, you will find a situation where "tariff" is correct. In that example, we are talking about what the government plans to do, which would require "tariff".
We hope our explanation is useful.
All the best
Deborah Capras
Dear Ms Capras,
Thanks a lot for your clear explanation.
Best regards,
Uwe Kindsvogel