Question

Could you please answer these two questions?

True or False:

1- Sanutary and phytosanitstary regulations are barriers to trade under WTO

2- Raising the exchange rate acts an export subsidy.

Answer 1

1. true

2.false

1.The agreement of the sanutary and phytosanitary regulations are came into force with the World trade Organization in 1995. And it ensures the food safety and animal and plant regualtions and palnt health. These regulations puts restrictions on these items to be traded. The desired country can fix the rules trade or they can accept the internationally accepted rules. This agrrement act as an barrier to trade but it is not that extreme

2. When the exchange rate rises the home currency becomes strong and the foreign currency become weak, as an exporter you cannot export more because there will not be any demand goods and services from other country.