Question

Which of the following types of nontariff barriers strictly falle under the category of specific limitations on trade?

A)Import credit discrimination
B) Export subsidies
C) Voluntary export restraints
D) Embargoes
E) Packaging, labeling, or marking

Answer 1

Specific limitations on trade due to nontariff barriers include import credit discrimination, voluntary export restraints, embargoes, and particular packaging, labeling, or marking standards. These are direct limitations unlike export subsidies which encourage exports rather than restricting them.

Step-by-step explanation:

The types of nontariff barriers that strictly fall under the category of specific limitations on trade include the following:

• Import credit discrimination
• Voluntary export restraints
• Embargoes
• Packaging, labeling, or marking

These forms of nontariff barriers directly limit the amount and kind of trade between countries by imposing restrictions other than tariffs. Export subsidies are not considered specific limitations on trade as they encourage export rather than restrict it. Nontariff barriers can be as effective as high tariffs in limiting imports and can include rules, regulations, inspections, and paperwork that make it costly or difficult to import products. They can also take the form of 'rules-of-origin' regulations which define where a product is made based on the last substantial change in the product. This type of protectionism can raise the price of the protected goods in the domestic market.