Question

Which methods can a government use to minimize unfair international competition?

1) Imposing tariffs on imported goods
2) Implementing trade restrictions
3) Providing subsidies to domestic industries
4) Promoting fair trade practices
5) All of the above

Answer 1

Governments can use various methods such as imposing tariffs, implementing trade restrictions, providing subsidies, and promoting fair trade practices to minimize unfair international competition.

Step-by-step explanation:

Governments have several methods to minimize unfair international competition:

1. Imposing tariffs on imported goods: This involves placing taxes on imported goods, making them more expensive and less competitive in the domestic market.
2. Implementing trade restrictions: This can include placing limits on the quantity or value of imported goods, making it harder for foreign competitors to access the domestic market.
3. Providing subsidies to domestic industries: Governments can offer financial support to domestic industries, helping them to compete more effectively against foreign competitors.
4. Promoting fair trade practices: Governments can work to establish and enforce regulations that promote fair competition and prevent unfair advantages for foreign competitors.

Therefore, all of the above methods can be used by a government to minimize unfair international competition.