Trade Barriers

What is the primary purpose of trade barriers?

• To encourage free exchange of goods and services

• To limit or control the exchange of goods and services across borders

• To promote international cooperation and political influence

• To reduce the cost of imported goods for consumers

How do tariffs primarily affect imported goods?

• They make imported goods cheaper for consumers

• They limit the quantity of imported goods

• They impose taxes, making imported goods more expensive

• They ensure product standards and safety checks

Which of the following is an example of a non-tariff barrier?

• Taxes on imported goods

• Limiting the number of units of a product that can be imported

• Financial support to local producers

• Product standards and safety checks

What is a potential long-term benefit of open trade policies for countries?

• Increased likelihood of trade wars

• Protection of domestic industries from all competition

• Higher standards of living due to innovation and better products

• Reduced political influence in the global economy

Which type of government do you think would impact trade the most? (Limited or unlimited) Why?