Asked by Jenifer Lalnunkimi on Jun 18, 2024
Verified
The World Trade Organization uses tariffs and quotas to protect favoured nations from foreign competition.
Tariffs and Quotas
Government-imposed taxes on imported goods (tariffs) and limits on the quantity of goods that can be imported (quotas) to protect domestic industries from foreign competition.
Favoured Nations
A policy or clause in an agreement ensuring that a country or party receives treatment at least as favorable as that given to any other country or party.
- Understand the implications of tariffs, quotas, and free trade agreements on international business.
Verified Answer
YA
Youssef Al MakdissiJun 22, 2024
Final Answer :
False
Explanation :
The World Trade Organization's main goal is to promote free trade and reduce barriers to trade, including tariffs and quotas. The WTO encourages its member countries to eliminate or reduce trade barriers, rather than protect favored nations from foreign competition.
Learning Objectives
- Understand the implications of tariffs, quotas, and free trade agreements on international business.