Question

The government of Mentlands levies large taxes and has set up a limit on the amount of goods FarTrek, a foreign sports goods manufacturer, can sell in Mentlands. In this scenario, FarTrek is most likely involved in _____.

Answer 1

The name which can be given to the taxation and limit of goods by a host country to FarTrek shows that they are in the business of:

• Exporting

What is Export?

This refers to the sale of goods from one country to another one as a result of comparative advantage and other factors.

With this in mind, we can see that because the government of Mentlands levies large taxes and has a limit on goods which FarTrek can sell, then FarTrek is involved in exporting.

Read more about exports here:
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