Trade Barriers Answers

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

standards

embargoes

quotas

tariffs

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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.

How do embargoes most negatively affect a domestic market?

by depriving domestic producers of needed goods, restricting their ability to trade

by helping international producers fill a market void, decreasing domestic trade

by preventing domestic producers from trading needed goods with all countries

by encouraging international producers to sell new goods for lower prices than domestic goods

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 what a subsidy does?

It keeps the price of domestic goods relatively low.

It raises the price of imported goods.

It encourages the import of foreign goods.

It eliminates all taxes on 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.

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