Multiple Choice
Which of the following is the most likely method a nation would use to limit the importation of inexpensive cars?
23
views
9. International Trade
Exporting and Importing
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is NOT a type of trade barrier?
A
Exchange rates
B
Quotas
C
Import licenses
D
Tariffs
Verified step by step guidance1
Step 1: Understand what trade barriers are. Trade barriers are government-imposed restrictions that limit or control international trade, typically to protect domestic industries.
Step 2: Identify common types of trade barriers. These include tariffs (taxes on imports), quotas (limits on the quantity of imports), and import licenses (government permissions required to import certain goods).
Step 3: Recognize that exchange rates are not trade barriers. Exchange rates refer to the value of one currency relative to another and affect trade costs indirectly but are not direct government-imposed restrictions on trade.
Step 4: Compare each option to the definition of trade barriers. Tariffs, quotas, and import licenses fit the definition, while exchange rates do not.
Step 5: Conclude that the correct answer is 'Exchange rates' because it is not a type of trade barrier.
Related Videos
Related Practice
Exporting and Importing practice set
Problem sets built by lead tutorsExpert video explanations