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Trade Barriers Answers

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Which best describes why countries establish limits on international trade? Choose three answers.

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

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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 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

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.

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 group directly benefits from subsidies?

exporters

sellers

producers

importers

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.

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

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Trade Barriers Answers

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