ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -free trade, also called laissez-faire, a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).

Detailed explanation-2: -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.

Detailed explanation-3: -Protectionism refers to the policy of protecting domestic industries against foreign competition through tariffs, import quotas and subsidies, or other restrictions placed on the imports of foreign competitors.

Detailed explanation-4: -Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.

Detailed explanation-5: -British ruined the Indian economy by imposing a policy of one-way free trade on India after 1813 this allowed British manufacturers, especially cotton textiles, to export goods to Indian markets at a nominal fee.