Question

In an effort to support local businesses, a country’s government forces foreign businesses out of the country. This is an example of a(n) ________ barrier to trade.

Option 1: Economic
Option 2: Political
Option 3: Cultural
Option 4: Environmental

Answer 1

The act of a government forcing foreign businesses out of the country to support local businesses is a political barrier to trade, which is a type of protectionism designed to safeguard domestic industries.

Step-by-step explanation:

When a country's government forces foreign businesses out of the country to support local businesses, this is an example of a political barrier to trade. Governments can encourage or discourage trade through various means such as tariffs, which are taxes on imported goods, or non-tariff barriers, which include regulations, inspections, and paperwork that make importing products more costly and difficult. Protectionism is a policy approach where the government implements measures to reduce or block imports to protect domestic industries. This can create barriers to entry for foreign competitors and is often achieved by establishing regulations that favor local businesses over international ones.