Trade Barriers and Economic Policies Quiz

Tariffs are taxes imposed on imported goods to make them more expensive and less competitive in the domestic market.

Trade barriers are implemented to shield domestic industries from foreign competition and maintain their competitiveness.

The World Trade Organization (WTO) is responsible for managing and resolving international trade disputes and agreements.

Subsidies provide financial aid to domestic producers, giving them a competitive edge in international markets.

A tariff is a tax levied on goods traded internationally, affecting the price and competitiveness of imported goods.

A quota is a restriction on the quantity of a specific good that can be imported or exported within a defined timeframe.

Dumping involves selling goods in foreign markets at prices lower than those in the domestic market, potentially harming domestic industries.

Protectionism involves using trade barriers to safeguard domestic industries from outside competition.

Import tariffs are actually a type of tariff, not a non-tariff barrier, as they involve taxes on imported goods.

Trade barriers limit the variety of goods available to consumers by restricting the entry of foreign products into the market.

Free trade refers to a situation where there are no restrictions or barriers on the exchange of goods between nations.

Embargoes are trade barriers imposed for national security reasons, restricting the import or export of certain goods.

Import substitution is a policy aiming to achieve a positive balance of trade by reducing reliance on imports.

A trade agreement is a pact between countries aimed at reducing or removing barriers to international trade.

The infant industry argument supports the imposition of tariffs to shield developing domestic industries until they can compete internationally.

A voluntary export restraint (VER) is a self-imposed restriction by an exporting country to limit the quantity of goods it exports to another country.

Imposing trade barriers typically hinders the expansion of global markets by restricting the flow of goods across borders.