Read the passage and answer the following question:
India and the United Kingdom have shared a strong economic relationship for decades. In recent years, both countries have been working towards finalising a comprehensive trade agreement to boost economic growth and cooperation. This proposed trade deal aims to reduce tariffs, encourage investments, and create new opportunities for businesses in sectors like technology, education, pharmaceuticals, and manufacturing.
Negotiations for the agreement have not always been easy. Issues like market access, labour mobility, and regulatory standards have led to lengthy discussions. However, leaders from both sides believe that a fair and balanced trade agreement will benefit millions by generating employment, increasing exports, and strengthening diplomatic ties.
Experts say that if successful, the India-UK trade agreement could become a model for future partnerships with other nations. It could help India expand its global reach and attract more foreign investors, while the UK could gain access to India's vast market, which is one of the fastest-growing in the world.
The word "tariffs" means:
Show answer & explanation
Correct answer: B
Explanation
Correct Answer: Taxes on imports or exports
Explanation:
• In international trade, a tariff refers to a tax or customs duty imposed by a government on goods and services brought into (imported) or sent out of (exported) a country.
• In the context of the passage, reducing tariffs makes trading goods between India and the UK cheaper and more accessible.
Example: The government decided to lower tariffs on electronic components to encourage local manufacturing.