When import licenses are sold through an auction to local importers in a competitive market, who receives the revenue generated from their scarcity value?

Choose the correct answer

Explanation

If import licenses are auctioned to domestic importers, the revenue from their limited availability—known as the scarcity value—goes to the domestic government, not to foreign entities or local corporations.

When import licenses are sold through an auction to … — Non-Tariff Trade Barriers | PakQuizHub