GENERAL KNOWLEDGE

Detailed explanation-1: -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-2: -Trade barriers include tariffs (taxes) on imports (and occasionally exports) and non-tariff barriers to trade such as import quotas, subsidies to domestic industry, embargoes on trade with particular countries (usually for geopolitical reasons), and licenses to import goods into the economy.

Detailed explanation-3: -The correct answer is trade barriers. Tax on imports is an example of trade barriers. It is called a barrier because restrictions have been set upon them. Governments can use trade barriers to increase or decrease foreign trade and to decide what kinds of goods and how much of each, should come into the country.