Asked by Katie Moules on Jun 14, 2024
Verified
An example of a nontariff barrier would be
A) a minimum limit on the quantity of imports.
B) excessive licensing requirements.
C) a tax on an imported product.
D) voluntary export restraints.
Nontariff Barrier
Measures other than tariffs that countries use to control the amount of trade across their borders, including quotas, embargoes, sanctions, and other restrictions.
Import
The act of bringing goods or services into a country from abroad for sale.
Export Restraints
Government-imposed limitations on the quantity or value of goods that can be exported from a country.
- Recognize the role of tariffs, quotas, and non-tariff barriers in international trade.
Verified Answer
DD
Daval DavisJun 16, 2024
Final Answer :
B
Explanation :
Excessive licensing requirements can act as a barrier to trade by making it difficult for foreign businesses to meet the necessary criteria to import or export goods. This can be a form of protectionism that restricts competition in the domestic market. A minimum limit on the quantity of imports (A) and a tax on an imported product (C) are examples of tariff barriers. Voluntary export restraints (D) are agreements between countries that limit the quantity of exports to a particular destination, and are a form of quota that can act as a barrier to trade.
Learning Objectives
- Recognize the role of tariffs, quotas, and non-tariff barriers in international trade.