Trade Barriers and Export Quotas Quiz

A government-imposed limit on the quantity of a specific good that can be exported during a particular period.

Countries restrict exports to ensure enough supply for their own domestic use, especially for essential resources or vital goods.

Export quotas can create more competition among domestic producers in the importing country, leading to higher prices for consumers.

By limiting supply on global markets, exporting countries can artificially raise the international price of a product.

Export quotas can impact workers in the exporting country by reducing the availability of local jobs.

A complete ban on all trade (imports and exports) with a specific country.

The most restrictive form of non-tariff trade barrier.

Individual countries or international organizations, like the United Nations, can impose embargoes.

An embargo can target trade in specific goods or services, or it can be a complete block on all trade with a country.

Embargoes are often used as a political tool to put pressure on a country to change its policies or behavior.

Laws that make it harder for foreign companies to sell their products in a country.

Taxes on imported goods. They make foreign products more expensive, helping local companies compete.

Limits on the quantity of goods allowed to enter a country.

Policies that make it difficult for foreign companies to operate in a country. Examples: strict regulations, complex paperwork.

Countries use trade barriers to protect their own industries from foreign competition. This helps their own businesses survive.

Examples include biased bidding practices against foreign companies, product standards that conflict with foreign goods, and excessive regulations by the host country.

Non-tariff barriers can be more restrictive than tariffs, limiting trade more effectively.

They are often more difficult to identify than tariffs, and can appear disguised.

Their impact can be unpredictable and severe, making them harder to manage and mitigate.

Import quotas can limit competition, leading to higher prices for consumers.

Import quotas can encourage foreign exporters to compete for limited access to the market, potentially leading to lower prices.

Domestic producers who rely on imported components or materials may face higher costs and potentially lower profits due to limited access to imported goods.

Domestic producers who compete directly with imported goods may benefit from reduced competition, but they can also lose if foreign exporters lower their prices to gain market share.

Laws requiring a specific amount of a good or service to be produced domestically.

These requirements can specify that a portion of the final product must be made with domestic goods or that a part of its cost must come from domestic sources.

To encourage companies to use local resources like labor and to protect domestic producers from companies in lower-wage countries.

They can help protect domestic producers from companies in other countries with price advantages due to lower wages.

Companies located in other countries may need to adapt their production processes or face restrictions.

Intentional delays created through regulations or bureaucratic procedures to hinder the flow of goods into a country.

Regulations that demand extensive paperwork, multiple inspections, or strict approvals for imported goods.

Taxes imposed on imported goods, making them more expensive for consumers.

A type of tariff calculated as a percentage of the imported good's value.

A tariff applied specifically to goods from a certain country, often for political reasons or trade imbalances.

A tariff based on the weight or volume of the imported product. For example, a tax on imported dairy products based on their weight.

Tariffs are a visible and predictable way to control imports. Companies can account for them in their marketing strategies.

Restrictions on the amount of a good that can enter or leave a country during a specific period.

Quotas are the second most common type of trade barrier, after tariffs.

These licenses allow foreign companies or countries, as well as domestic producers, to import or export goods within the set quotas.

These measures are used to limit the amount of a good that can be imported or exported, potentially ensuring that enough of the product remains available for domestic use.

They can be used to protect local industries from foreign competition, or to maintain a certain level of domestic production.