ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tariff
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quota
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embargo
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None of the above
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Detailed explanation-1: -Tariffs have three primary functions: to serve as a source of revenue, to protect domestic industries, and to remedy trade distortions (punitive function). The revenue function comes from the fact that the income from tariffs provides governments with a source of funding.
Detailed explanation-2: -Answer: (i) Foreign trade creates opportunities for producers to reach beyond domestic markets. Producers can compete in markets located in other countries of the world. Similarly, for the buyers, import of goods from another country leads to expanding choice of goods beyond what is domestically produced.
Detailed explanation-3: -More Job Opportunities. Expanding Target Markets & Increasing Revenues. Improved Risk Management. Greater Variety of Goods Available. Better Relations Between Countries. Enhanced Company Reputation. Opportunities to Specialize. 31-Aug-2022
Detailed explanation-4: -High prices for exports and lower prices for imports are net gains for a country: Efficient allocation of resources is a result of such exchanges. Trade liberalization increases real GDP: Efficient allocation of resources has a positive influence on GDP. More items •15-Oct-2022