ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
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Detailed explanation-1: -International trade in which countries both import and export the same or similar goods is called two-way (or intraindustry) trade. Two reasons countries import and export the same goods are variations in transportation costs and seasonal effects.
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: -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-4: -Tariffs are a tax on imports. Quotas are a limit on the number of a certain good that can be imported from a certain country. Embargoes occur when one country bans trade with another country. More items