Question

Select three terms that specifically represent international trade barriers.

A) Tariffs
B) Embargoes
C) Subsidies
D) Quotas
E) Exchange rates
F) Comparative advantage

Answer 1

Trade barriers such as tariffs, embargoes, and quotas are used by governments to limit international trade.

Step-by-step explanation:

Trade Barriers and Protectionism

International trade barriers are restrictions put in place by governments to limit the flow of trade between countries. Three specific terms that represent international trade barriers are tariffs, embargoes, and quotas.

1. Tariffs: A tariff is a tax imposed on imported goods. It increases the price of foreign goods, making them more expensive for domestic consumers and therefore less competitive against domestic products.
2. Embargoes: An embargo is a complete ban on trade with a particular country. It can be implemented for political or economic reasons, and it prevents any goods or services from being exchanged between the two countries.
3. Quotas: A quota is a limit set on the quantity of a certain product that can be imported. It restricts the amount of foreign goods that can enter a country, providing protection to domestic industries.

These trade barriers are commonly used to protect domestic industries, maintain national security, or address trade imbalances between countries.