ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Terms in this set (15) Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year. Example: In 1963, President Kennedy issued sanctions, which prohibited all trade with Cuba.

Detailed explanation-2: -A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries.

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: -An embargo is a trade restriction, typically adopted by a government, a group of countries or an international organization as an economic sanction. Embargoes can bar all trade, or may apply only to some of it, for example to arms imports.