Trade Restrictions and Their Impacts

The video discusses how governments sometimes restrict trade to protect domestic industries, punish other countries, or safeguard sensitive sectors. It outlines various forms of trade restrictions, such as tariffs, quotas, and embargoes, and explains indirect methods like subsidies that affect trade. These actions significantly impact global trade dynamics.

Why might a government restrict trade to protect its own industries?

• To help developing industries gain experience

• To increase international competition

• To encourage foreign investment

• To reduce domestic employment

What is a reason for imposing trade restrictions on sensitive industries?

• To encourage foreign competition

• To increase import taxes

• To protect national security

• To promote international trade

How do governments use trade restrictions as a form of punishment?

• By offering subsidies to foreign companies

• By imposing trade sanctions

• By increasing import quotas

• By reducing tariffs

Which of the following is an example of a trade restriction?

• Foreign direct investment

• Tariffs on imported goods

• Free trade agreements

• Export subsidies

What is a quota in the context of trade restrictions?

• A requirement for safety standards

• A subsidy for domestic producers

• A limit on the quantity of an import

• A tax on exported goods

What is an embargo?

• A requirement for safety inspections

• A limit on the number of imports

• A tax on imported goods

• A complete ban on trade with a specific country

How can governments indirectly impact trade?

• By imposing quotas

• By enforcing embargoes

• By providing subsidies to domestic industries

• By increasing tariffs

What is the overall impact of government actions on global trade?

• They have no significant impact

• They only affect domestic trade

• They can significantly alter the level of global trade

• They always increase global trade