Match each type of trade barrier with its effect.

Question

taxes on imports and exports
a ban on all trade with a country
a limit on imports from a country

Answer 1

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.