Question

The country of Cadmia, which is a leading producer of bauxite, had to impose trade sanctions on Cerian soda cans in order to get the government of Ceria to enforce export restraints. This imposition by Cadmian government was undertaken to protect domestic producers of soda cans. Which of the following government intervention is being used by Cadmia?

A. Diversification

B. Deregulation

C. Retaliation

D. Liberalization

E. Monopolization

Answer 1

The Cadmian government is engaging in C. Retaliation by imposing trade sanctions on Cerian soda cans to protect its domestic producers and compel Ceria's government to enforce export restraints.

Step-by-step explanation:

The government intervention being used by Cadmia is retaliation.

Retaliation is a form of trade restriction imposed by a country in response to another country's trade barriers or unfair practices. In this case, Cadmia is imposing trade sanctions on Cerian soda cans to put pressure on the government of Ceria to enforce export restraints. By restricting the importation of Cerian soda cans, Cadmia is trying to protect its domestic producers of soda cans.

The Cadmian government is using retaliation as a government intervention by imposing trade sanctions on Cerian soda cans to enforce their government's export restraints, thus protecting the domestic soda can producers. This is a form of economic response to the actions of another country and aims to encourage the other country to change its policy while defending local industries. Other common forms of trade barriers include import tariffs, import quotas, and safety measures, often adopted by countries to protect their infant industries or sectors critical for national security or cultural identity.