Answers IL-EconomicsInternational Trade

Trade Barriers Answers

10 verified answers2 views

Free Preview

How are subsidies similar to tariffs?

Both are types of taxes.

Both aim to lower the price of domestic goods.

Both are types of tax breaks and financial assistance.

Both allow domestic goods to compete against foreign goods.

Free Preview

Tariffs and subsidies are both examples of

monetary restrictions for the domestic producer.

economic benefits for the consumer.

economic benefits for the international producer.

incentives—one positive and one negative.

How do quotas help domestic producers?

Quotas facilitate increased exports of domestic goods.

Quotas lower the cost of domestic goods.

Quotas limit the number of producers that compete in a sector.

Quotas facilitate the sale of more domestic goods.

Which best describes the standards required of foreign producers?

Foreign producers have more stringent standards than domestic producers.

Foreign producers must meet the same standards as domestic producers.

Foreign producers must meet specific standards based on their origin.

Foreign producers do not use standards that harm consumers.

Why do countries provide financial incentives?

Financial incentives act as trade barriers.

Financial incentives limit imports.

Financial incentives set standards.

Financial incentives restrict all trade.

Which of these is a positive incentive for domestic producers?

a subsidy on imported cars

a tariff on cars

a subsidy on domestic oranges

a tariff on clothes

Which group directly benefits from subsidies?

exporters

sellers

producers

importers

What is the government’s aim in setting quotas?

to create more competition in the market

to increase sales of domestic goods

to keep tariffs high

to limit export of domestic goods

What is the purpose of quotas?

to ban all imports from a country

to ensure specific goods are not available to consumers

to limit how much of a good can be imported

to keep prices on domestic goods low

Which best describes why countries establish limits on international trade? Choose three answers.to force domestic industries to sell higher quality goodsto restrict foreign influence in a sectorto restrict importation of a foreign goodto lower the price of foreign goodsto punish other countries

to force domestic industries to sell higher quality goods

to restrict foreign influence in a sector

to restrict importation of a foreign good

to lower the price of foreign goods

to punish other countries

What is the government’s aim in setting quotas?

to create more competition in the market

to increase sales of domestic goods

to keep tariffs high

to limit export of domestic goods

Which best describes how standards help domestic producers?

Standards require goods to meet basic requirements.

Standards provide financial support for producers.

Standards restrict the import of cheap goods.

Standards offer incentives to ensure high quality.

Which type of trade barrier is explicitly used for political purposes?

standards

embargoes

quotas

tariffs

On which country has the United States imposed an embargo since 1960?

Cuba

Iran

North Korea

Syria