CAT 2002 VARC Question 34 · Grammar & Error Spotting

In each of the questions given below, four different ways of writing a sentence are indicated. Choose the best way of writing the sentence.

1. The distinctive feature of tariffs and export subsidies is that they create difference of prices at which   goods are traded on the world market and their price within a local market.
2. The distinctive feature of tariffs and export subsidies is that they create a difference of prices at which  goods are traded with the world market and their prices in the local market.
3. The distinctive feature of tariffs and export subsidies is that they create a difference between prices at  which goods are traded on the world market and their prices within a local market.
4. The distinctive feature of tariffs and export subsidies that they create a difference across prices at  which goods are traded with the world market and their prices within a local market.