Question

Which type of trade barrier is most advantageous from the government's perspective? give me comments to...

  1. Which type of trade barrier is most advantageous from the government's perspective? give me comments to respond to this

Homework Answers

Answer #1

The most trade barrier from the perspective of government is -

  • Tariff - These are imposed by the government on the product and services which are imported. When tariffs are imposed it raised the price of product due to which it is available at an expensive rate to the local consumers which helps the government to protect the local industries which are not able to competete with foreign products
  • Quotas - These are restrictions which are imposed by the government on limiting the quantity or value of specific goods or services which are imported over the time. The idea is to just limit the quantity of such products in order to reduce its demand and raise the domestic industries infront of them
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