Which of the following laws is considered a trade barrier?

a) A company that produces furniture is shut down
b) federal aid given to unemployed workers from a factory
c) paying money to an industry to encourage it to make goods in the country ***
d) consumers deciding to purchase only locally made goods

3 answers

c) paying money to an industry to encourage it to make goods in the country
Please explain why.
Paying money to an industry to encourage it to make goods in the country is considered a trade barrier because it provides financial support or incentives exclusively to domestic producers. This financial advantage can create a competitive disadvantage for foreign producers, placing them at a disadvantage when trying to access or compete in the local market. This practice can impede free trade by unfairly favoring domestic producers and restricting the entry of foreign competitors. Therefore, it is considered a form of protectionism and a trade barrier.
Similar Questions
  1. Economics Basics Unit Test11 of 1511 of 15 Items Question Which of the following laws is considered a trade barrier? (1 point)
    1. answers icon 1 answer
  2. QuestionWhich of the following laws is considered a trade barrier? (1 point) Responses A company that produces furniture is shut
    1. answers icon 1 answer
  3. Which of the following laws is considered a trade barrier?(1 point) Responses A company that produces furniture is shut down A
    1. answers icon 1 answer
  4. Which of the following laws is considered a trade barrier?(1 point) Responses A company that produces furniture is shut down A
    1. answers icon 1 answer
more similar questions