Question

Countries create trade barriers when they are interested in protecting __________ goods from ____________ competition.
A.
international . . . domestic
B.
domestic . . . domestic
C.
domestic . . . international
D.
international . . . international



Please select the best answer from the choices provided


A
B
C
D

Answer 1

Trade barriers are restrictions placed on international trade.

So for example, America can create trade barriers with China and that's to prevent trade with China. Trade barriers come in many forms and it can be a complete ban on all goods or just certain goods. Or an increased tax/tariff on the goods so as to reduce the trade. This is all to protect local jobs and trade here.

So when they create trade barriers, what are you protecting?
Are you protecting domestic (that is, local trade in America) or are you protecting international trade?

And what are you protecting it from? What is the competition that we're protecting it from? Domestic or international?