Which of the following are examples of devices countries use to exert trade protectionism?

• A. Tariffs and import quotas
• B. Currency appreciation policies
• C. Free trade agreements
• D. Export subsidies and voluntary export restraints

Answer: (A)

Verified step by step guidance

1. Understand the concept of trade protectionism: it refers to policies and measures that countries use to restrict imports and protect domestic industries from foreign competition.
2. Identify common trade protectionism devices: these typically include tariffs (taxes on imports), import quotas (limits on the quantity of imports), export subsidies (financial support to domestic exporters), and voluntary export restraints (agreements to limit exports).
3. Analyze each option: tariffs and import quotas are classic examples of protectionist tools because they directly limit or tax imports to protect domestic producers.
4. Recognize that currency appreciation policies generally make imports cheaper and exports more expensive, which is not a protectionist measure but rather can increase trade openness.
5. Note that free trade agreements aim to reduce trade barriers, so they are the opposite of protectionism, while export subsidies and voluntary export restraints can also be used as trade policy tools but are not always classified strictly as protectionism on imports.