Question

Which of the following are examples of government barriers aimed at restricting access to local markets?

1) Devaluation of the currency
2) Import quotas
3) Radical changes in commercial regulations
4) All of the above are examples of barriers restricting access to local markets

Answer 1

Devaluation of currency, import quotas, and radical changes in commercial regulations are examples of government barriers aimed at restricting access to local markets.

Step-by-step explanation:

The government can use various barriers to restrict access to local markets. Examples of these barriers include:

1. Devaluation of the currency: When a government purposely lowers the value of its currency, it makes imported goods more expensive and less attractive compared to domestically produced goods.
2. Import quotas: These are restrictions placed on the quantity of specific goods that can be imported into a country. By limiting the amount of imports, the government can protect domestic industries and maintain control over the local market.
3. Radical changes in commercial regulations: Governments can impose new regulations or make drastic changes to existing regulations to make it harder for foreign businesses to operate in the local market. These changes may involve stricter licensing requirements, higher taxes, or additional regulatory barriers.

All of the options mentioned (1, 2, and 3) are examples of government barriers aimed at restricting access to local markets.