Question

Singapore has granted a(n) _____ on the importation of beer and stout made in the Philippines. This means that beer and stout made in the Philippines can sell for less in Singapore than beer and stout made by New Zealand or the United States.

Answer 1

Answer:

Singapore has granted a preferential tariff.

Explanation:

A preferential tariff is a tariff that favors or gives preferential treatment to the imports from a country over another country. This kind of tariff exists between countries that have entered Free Trade Agreements (FTA) with each other.

Thus, when imports from FTA partner countries arrive, tariffs are totally eliminated or issued at a lower cost. This gives the FTA partner country an advantage of selling their products for less (without incurring huge costs).