Trade Barriers Quiz

What is a consequence of not having tariffs on foreign-made jeans?

• Number of Imports of jeans will decrease

• Balance of trade improved

• Number of Imports of jeans will increase

• Money stays in Canada

Who is considered a loser because their goods become more expensive?

• Local Employees

• Foreign Producers

• Domestic Governments

• Local Producers

What was the Ottoman Empire's strategy regarding tariffs on the Silk Trade Route?

• To reduce costs for European countries

• To increase the availability of imported goods

• To impose high tariffs to force European countries to buy its textiles

• To boost global supply chain efficiency

What is a potential negative impact of tariffs on global supply chains?

• Increase in local job availability

• Reduction in domestic alternatives

• Increase in costs and creation of inefficiencies

• Boost in GDP

What is a tariff?

• A subsidy given to exporters

• A tax imposed on imported goods

• A discount on domestic products

• A fee for exporting goods

What is a common reason for a country to impose tariffs on imported goods?

• To reduce government revenue

• To encourage foreign investment

• To protect local industries from foreign competition

• To decrease domestic production

How can tariffs affect consumer prices in the importing country?

• They stabilize consumer prices

• They generally decrease consumer prices

• They have no effect on consumer prices

• They generally increase consumer prices

Which of the following is a potential benefit of removing tariffs?

• Reduced competition for local businesses

• Lower prices for consumers

• Decreased variety of products available

• Increased cost of imported goods

What is a potential effect of high tariffs on imported electronics?

• Decrease in local employment

• Lower prices for consumers

• Increase in foreign investment

• Increase in domestic production of electronics

Why might a government choose to lower tariffs on essential goods?

• To increase government revenue

• To make essential goods more affordable for citizens

• To protect local industries

• To decrease the variety of available products