ECONOMICS (CBSE/UGC NET)

ECONOMICS

BARRIERS TO TRADE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of which trade barrier?
A
Tariff
B
Market
C
Embargo
D
Quota
Explanation: 

Detailed explanation-1: -Trade barriers include tariffs (taxes) on imports (and occasionally exports) and non-tariff barriers to trade such as import quotas, subsidies to domestic industry, embargoes on trade with particular countries (usually for geopolitical reasons), and licenses to import goods into the economy.

Detailed explanation-2: -The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.

Detailed explanation-3: -Answer: Tax on imports is known as a trade barrier because it increases the price of imported commodities.

Detailed explanation-4: -Specific tariffs. Ad valorem tariffs. Licenses. Import quotas. Voluntary export restraints. Local content requirements.

There is 1 question to complete.