Trade Barriers Flashcard

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What is a tariff?

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A tariff is a tax or duty imposed on imported or exported goods.

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What is the purpose of a tariff?

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The purpose of a tariff is to protect domestic industries.

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How does a tariff affect the price of imported goods?

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The price of imported goods increases.

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What is a quota?

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A quota is a predetermined or fixed amount or limit that is set for something.

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What is the purpose of a quota?

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The purpose of a quota is to control or regulate the quantity or quality of something.

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How does a quota affect the quantity of imported goods?

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A quota reduces the quantity of imported goods.

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What are the advantages and disadvantages of quotas?

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Quotas have advantages such as protecting domestic industries and promoting economic growth, but they also have disadvantages such as higher prices for consumers and limited competition.

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What is an embargo?

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A government-imposed restriction on trade or other commercial activity with a particular country or group of countries.

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What is the purpose of an embargo?

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The purpose of an embargo is to exert economic pressure or to punish a country for political reasons.

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What is a trade barrier?

Back

A government imposed restriction on the flow of international goods or services.

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