Trade Barriers and Protectionism Concepts

The video tutorial discusses various barriers to international trade, focusing on legal and political differences. It covers quotas, embargoes, tariffs, subsidies, protectionism, local content laws, business practice laws, and illegal practices like cattles and dumping. Each barrier is explained in terms of its impact on trade and the economy, with examples provided to illustrate their effects.

What is the primary purpose of trade barriers?

• To protect domestic industries

• To reduce government revenue

• To increase international trade

• To promote cultural exchange

How do quotas affect the price of imported goods?

• They increase the price

• They stabilize the price

• They have no effect on the price

• They decrease the price

What is an embargo primarily used for?

• To encourage trade with specific countries

• To increase the supply of domestic goods

• To completely stop trade with certain countries

• To reduce tariffs on imported goods

What is the main effect of tariffs on imported goods?

• They increase the quality of imported goods

• They make imported goods more expensive

• They have no effect on the price

• They make imported goods cheaper

What is a subsidy?

• A complete ban on trade with a country

• A restriction on the number of imports

• A government payment to support domestic businesses

• A tax on imported goods

What is the goal of protectionism?

• To reduce government intervention in trade

• To protect domestic industries from foreign competition

• To promote free trade

• To increase international cooperation

What do local content laws require?

• No domestic production is allowed

• All products must be imported

• Products sold in a country must be partly made there

• Only foreign companies can sell products

What is a cartel?

• A government-imposed tax on exports

• A subsidy for domestic businesses

• An association of producers to control prices

• A legal agreement to increase competition

What is dumping in international trade?

• A form of government subsidy

• Selling products abroad at higher prices

• A type of trade embargo

• Selling products abroad at lower prices than at home

Which of the following is NOT a trade barrier?

• Free trade agreement

• Subsidy

• Tariff

• Quota