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What is the trade barrier?

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a

Restriction on imports

b

Tax on imports

c

Both of above

d

None of above

answer is C.

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Detailed Solution

A trade barrier is a restriction that is on imports and Tax on imports put by the government for the following reasons:
1) By imposing trade barriers, the government tries to regulate foreign trade in the country. It decides what kinds of goods to be imported into the nation and how much quantity.
2) The government put barriers to foreign trade to protect the interest of the domestic producers of the country. To save the producers of the country so that the supply of domestic goods in the government does not decrease due to the hike in the supply of foreign goods, which is a loss for the domestic producers.

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