Question
Match each type of trade barrier with its effect.
taxes on imports and exports
a ban on all trade with a country
a limit on imports from a country
taxes on imports and exports
a ban on all trade with a country
a limit on imports from a country
Answers
GPT-4o mini
Here are the types of trade barriers matched with their respective effects:
1. **Taxes on imports and exports**: **Tariffs** - These increase the cost of imported goods, making them less competitive compared to domestic products; they can also affect trade relationships by imposing costs on exports.
2. **A ban on all trade with a country**: **Embargo** - This completely halts trade with a particular country, often for political reasons, and can lead to economic isolation for the affected nation.
3. **A limit on imports from a country**: **Quota** - This restricts the quantity of specific goods that can be imported, protecting domestic industries from foreign competition by limiting the supply of imported products.
1. **Taxes on imports and exports**: **Tariffs** - These increase the cost of imported goods, making them less competitive compared to domestic products; they can also affect trade relationships by imposing costs on exports.
2. **A ban on all trade with a country**: **Embargo** - This completely halts trade with a particular country, often for political reasons, and can lead to economic isolation for the affected nation.
3. **A limit on imports from a country**: **Quota** - This restricts the quantity of specific goods that can be imported, protecting domestic industries from foreign competition by limiting the supply of imported products.