A
A tariff imposed exclusively on goods priced below fair market value to protect domestic markets.
B
A tariff levied on imported goods to neutralize subsidies granted by the exporting country's government.
C
A penalty tax imposed by the Ministry of Finance on companies evading income tax.
D
An export duty charged by the home country on subsidized products sent abroad.
Correct answer: (b) A tariff levied on imported goods to neutralize subsidies granted by the exporting country's government.
Explanation
Option B is correct as it accurately defines a Countervailing Duty as a tariff levied to neutralize government subsidies. Option A describes an anti-dumping duty, making it incorrect, while options C and D are factually inaccurate regarding trade tariffs.