ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
encourage the flow of trade
|
|
|
block or slow down trade
|
|
|
make people obey the government
|
|
|
limit the number of corrupt government officials
|
Detailed explanation-1: -The most direct barrier to trade is an embargo– a blockade or political agreement that limits a foreign country’s ability to export or import. Embargoes still exist, but they are difficult to enforce and are not common except in situations of war. The most common barrier to trade is a tariff–a tax on imports.
Detailed explanation-2: -A trade barrier refers to any regulation or policy that restricts international trade, especially tariffs, quotas, licences etc.
Detailed explanation-3: -Trade barriers such as tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output.
Detailed explanation-4: -Embargoes block all trade with another nation. An embargo may be employed for safety reasons, but is more frequently used to punish rogue states (US embargo against Cuba)
Detailed explanation-5: -The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers.