Which of the following laws is considered a trade barrier?

Question

(1 point)
Responses

A company that produces furniture is shut down

A company that produces furniture is shut down

federal aid given to unemployed workers from a factory

federal aid given to unemployed workers from a factory

paying money to an industry to encourage it to make goods in the country

paying money to an industry to encourage it to make goods in the country

consumers deciding to purchase only locally made goods

Answer 1

A trade barrier typically refers to any regulation or policy that makes it difficult for international trade to occur. Among the options provided, the response that best fits this definition is:

paying money to an industry to encourage it to make goods in the country.

This describes a subsidy, which can act as a trade barrier because it can give domestic industries an unfair advantage over foreign competitors, thereby affecting imports.