ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They hinder global trade
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Something that slows/stops trading
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They make countries unable to trade with each other
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They do nothing. Trade barriers have no effect on countries
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Detailed explanation-1: -Barriers to trade are often called “protection” because their stated purpose is to shield or advance particular industries or segments of an economy.
Detailed explanation-2: -Trade barriers are often enacted to protect industries and workers within a country. This is referred to as protectionism. For example, tariffs, quotas and embargoes make foreign goods more expensive and less available.
Detailed explanation-3: -Trade barriers refer to the obstacles that are put in place by governments to limit free trade between national economies. Trade barriers are thus essentially interventions in markets that happen to operate internationally.
Detailed explanation-4: -A trade barrier is a kind of measure which are introduced by the government or public authorities in order to make imported goods and services are less competitive than locally produced goods and services.
Detailed explanation-5: -Trade barriers such as tariffs on food imports or subsidies for farmers in developed economies lead to overproduction and dumping on world markets, thus lowering world prices to the disadvantage of farmers in developing economies who typically do not benefit from such subsidies.