ECONOMICS (CBSE/UGC NET)

ECONOMICS

TRADE EXCHANGE AND INTERDEPENDENCE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In economic terms, what is a trade barrier?
A
a natural, geographic block to trade
B
something that encourages free trade
C
anything that restricts the amount of trade
D
a location where international trade takes place
Explanation: 

Detailed explanation-1: -A trade barrier refers to any regulation or policy that restricts international trade, especially tariffs, quotas, licences etc.

Detailed explanation-2: -Quotas are types of trade barriers that restrict how much of a product can be imported into a country.

Detailed explanation-3: -Sometimes referred to as “red tape, ” these barriers typically include quotas, boycotts, licences, standards and heavy regulations, local content requirements, restrictions on foreign investment, domestic government purchasing policies, exchange controls and subsidies.

Detailed explanation-4: -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.

There is 1 question to complete.