Which of the following applies to the argument that trade barriers can help a country improve its terms of trade? Multiple choice question.This strategy works by increasing the global demand of the relevant product.The intention of a trade barrier in this case is to reduce the global price of the relevant product.This argument is relevant when a country is a minor global importer of a particular product.
Question
Which of the following applies to the argument that trade barriers can help a country improve its terms of trade? Multiple choice question.This strategy works by increasing the global demand of the relevant product.The intention of a trade barrier in this case is to reduce the global price of the relevant product.This argument is relevant when a country is a minor global importer of a particular product.
Solution
The intention of a trade barrier in this case is to reduce the global price of the relevant product.
This is because trade barriers, such as tariffs and quotas, are often used by countries to protect their domestic industries from foreign competition. By imposing these barriers, a country can reduce the supply of the foreign product in its market, which can lead to an increase in its price. This can make the domestic product more competitive, and potentially increase its global demand. However, this strategy can also lead to retaliation from other countries, and can potentially lead to a trade war.
Similar Questions
From the following list, select all the options which apply to the argument that trade barriers can help a country improve its terms of trade.Multiple select question.This argument is relevant when a country is a major global importer of a particular product.When this argument applies to a country, the country can impose a tariff to reduce global demand for a particular product.This argument is relevant when a country is a major global exporter of a particular product.
Which one of the following is a non-economic argument in favour of trade protection?Multiple choice question.Trade barriers can be used to ensure adequate environmental and safety standards in the production of goods and services.Trade barriers can help protect a country's cultural sovereignty.Trade barriers can be used to protect infant industries so that the can grow sufficiently to compete globally.Trade barriers help stimulate domestic employment
An argument in favour of imposing higher trade barriers is that they may*1 pointdiscourage foreign trade investmentresult in greater customer choiceencourage more importsprotect important or new industries
Trade barriers can be beneficial to a country because they:A.prevent the country from becoming too reliant on foreign goods.B.increase the variety of consumer goods available in the country.C.lower the overall cost of producing goods within the country.D.make businesses in the country more efficient at producing goods.
An argument in favour of imposing higher trade barriers is that they may
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