ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade reflects the impact ofspecialisation and exchange rates
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This is international trade free fromartificial barriers such as import tariffs, quotas and other trade barriers
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This is international trade with artificial barriers such as import tariffs, quotas and other trade barriers
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None of the above
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Detailed explanation-1: -A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics.
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: -Meaning. Tariff barriers are imposed by the government in the form of taxes or duties on its imports. Non tariff barriers cover all the restrictions other than taxes imposed by the government on its imports, Reason for imposing. To provide protection to its domestic companies and increase government revenue.
Detailed explanation-4: -Many Free Trade Agreements (FTAs) and other special trade legislation establish Tariff Preference Levels (TPLs) that CBP administers like tariff rate quotas. TPLs also permit a specified quantity of imported merchandise to be entered at a reduced rate of duty during the quota period.