ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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restrict or limit trade between countries.
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completely stop trade between countries.
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increase trade between countries.
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make trading a lot easier between countries.
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Detailed explanation-1: -Tariffs provide a country with extra revenue and they offer protection to domestic producers by causing imported items to become more expensive. Quotas are more effective in restricting trade than tariffs, especially if domestic demand for something is not price-sensitive.
Detailed explanation-2: -Quotas and tariffs are both used to protect domestic industries by artificially raising prices in the domestic market.
Detailed explanation-3: -Protectionism is the economic policy of restraining trade between countries through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to foster fair competition between imports and domestically produced goods and services.
Detailed explanation-4: -A quota limits the quantity of a good that can be imported into a country. A tariff is a tax placed on an import.
Detailed explanation-5: -The main objective of tariffs and quotas is to protect the domestic industries and jobs from high foreign competition because most commodities imported into countries are usually cheaper because of their low production costs.