ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If Panama decides to stop trading with Venezuela because of oil spills and oil pollution, what kind of trade barrier would be placed on Venezuela?
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Tariff
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Quota
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Embargo
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None of the above
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Explanation:
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: -option B, import quotas, is the correct answer.
Detailed explanation-3: -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.
There is 1 question to complete.