Question

Which of the following refers to trade barrier in the context of WTO?
I. Restrictions on domestic trade.
II. Not allowing companies to do foreign trade beyond specific quantity.
III. Restrictions on the import and export of goods.
IV. Restrictions on the price fixed by companies.

• A. I,II and III
• B. I, II and IV
• C. III and IV
• D. I, III and IV

Answer 1

Answer: (C)

III and IV

Trade barriers are Government induced restrictions on international Trade. They are normally of 2 types :

1) Tariff Barriers - These are basically taxes imposed by the Government on the some products which are imported so that their price increases. This is normally done to Protect the domestic Industry, Increase the Government's revenue, prevent oversupply of some good also called as Dumping, etc.

2) Non tariff barriers - These are barriers to international trade other than the tariff barriers. For Example, Subsidies provided by the Government on certain goods to improve their competitiveness, import licensing, pre shipment inspection, etc