ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tariffs
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Quotas
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Preservation of Standards
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Export Subsidies
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Embargo
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Detailed explanation-1: -A quota limits the quantity of a good that can be imported into a country. A tariff is a tax placed on an import.
Detailed explanation-2: -Terms in this set (15) Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year. Example: In 1963, President Kennedy issued sanctions, which prohibited all trade with Cuba.
Detailed explanation-3: -The correct answer is “c. The U.S. imposes a tax on sugar imported from Brazil.” This is the only answer choice that involves a tax being placed on an import. A tariff is one of the most common trade barriers, and it is a tax on an import.
Detailed explanation-4: -Tax on imports is an example of a trade barrier because it increases the price of imported • commodities. The government can use a trade barrier like ‘tax’ to increase or decrease (regulate) foreign trade and to decide what kind of goods and how much of what should come into the country.