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Question
what is the difference between internal vs. external tariffs? give an example of each from the colonial period.
Internal tariffs are taxes on goods traded within a country or colonial - territory, while external tariffs are on goods imported or exported across national or colonial borders. In the colonial period, an example of an internal tariff could be taxes on goods transported between different regions within a large colonial territory. For instance, in British - ruled India, there were internal tariffs on goods moving between provinces. An example of an external tariff is the British Navigation Acts which imposed external tariffs on goods imported into British colonies from non - British sources.
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Internal tariffs are taxes on in - colony trade; example: intra - provincial taxes in British India. External tariffs are on cross - border trade; example: British Navigation Acts' tariffs on non - British imports to colonies.