ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Japan is allowed to send as many electronic products to the U.S. as they want.
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The U.S. freely trades with other countries with no restrictions.
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A high tax is placed on all diamonds received from Africa.
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None of the above
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Detailed explanation-1: -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-2: -The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.
Detailed explanation-3: -Tax on imports is an example of trade barriers. It is called a barrier because restrictions have been set upon them. Governments can use trade barriers to increase or decrease foreign trade and to decide what kinds of goods and how much of each, should come into the country.
Detailed explanation-4: -The barriers can take many forms, including the following: Tariffs, Import quotas, Import licenses, etc.