Question

Which of the following expressions amount to the import restriction measures?
(i) Currency control
(ii) Establishment of EPZs
(iii) Tariff cuts
(iv) Imposition of tariffs
(v) Imposition of non-tariff barriers

• A. (i), (ii) and (iii)
• B. (i), (iv) and (v)
• C. (iii), (iv) and (v)
• D. (ii), (iii) and (v)

Answer 1

Answer: (B)

(i), (iv) and (v)

Import restrictions refer to various tariff and non-tariff barriers imposed by an importing nation to control the volume of goods coming into the country from other countries. Import restrictions are adopted to maintain the exchange rate of the country's currency. The main types of trade restrictions are tariffs, quotas, embargoes, licensing requirements, standards, and subsidies. A tariff is a tax put on goods imported from abroad. The effect of a tariff is to raise the price of the imported product therefore option 'b' is correct answer.