ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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earn valuable foreign exchange
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obtain goods they cannot grow or produce
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develop healthy relationships with countries
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create trade barriers with countries
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Detailed explanation-1: -Trade barriers are often enacted to protect industries and workers within a country. This is referred to as protectionism. For example, tariffs, quotas and embargoes make foreign goods more expensive and less available.
Detailed explanation-2: -Subsidies: It is a form of financial grant or aid given by the state to help an industry or business keep the price of a commodity or service at an affordable price. Export Security: It is a measure used by the government for the protection of producers or consumers of a particular. It is not a trade barrier.
Detailed explanation-3: -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.
Detailed explanation-4: -There are three main types of barriers to international trade: tariffs, quotas, and other non-tariff barriers.