ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to make domestic goods (those made in the home country) be so expensive that Turkey will buy them all
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to help domestic producers remain competitive in the world marketplace
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to show off the specialization of a country’s goods and services
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to provoke a war among nations participating in the political trade barrier
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Detailed explanation-1: -Government can use trade barriers to increase or decrease foreign trade and to decide what kind of goods and how much of each should come into the country.
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. The most common barrier to trade is a tariff–a tax on imports.
Detailed explanation-3: -Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
Detailed explanation-4: -Incorrect or unfair customs valuation. Lack of customs procedure transparency. Problematic rules of origin certification requirements. Burdensome import licensing requirements.