ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following trade barriers would not be effective if a leader only wants to limit trade?
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Tariff
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Embargo
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Quota
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None of the above
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Explanation:
Detailed explanation-1: -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-2: -The Correct Answer is Option 3 i.e Export Security.
Detailed explanation-3: -Barriers like subsidies can also artificially lower the global price of goods and services to a point that drives some producers out of business. Once enacted, trade barriers can be extremely difficult to remove because the industries protected have high incentives to keep them in place.
Detailed explanation-4: -The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers.
There is 1 question to complete.