Which of the following is the reason for the government to impose barriers on trade?

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To regulate the type and amount of goods that can enter the country.

To increase competition in the domestic country.

To remove the monopoly markets in the country.

To improve the performance of domestic producers in the country.

answer is A.

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Detailed Solution

Government imposes barriers on trade to regulate the type and amount of goods that can enter the country. With globalisation, many countries had to open their markets to global companies. If the government does not impose barriers on trade, it will be harmful to their domestic industry as they will be unable to compete with cheap global products. This made the countries have difficulty becoming heavily dependent on other countries for goods and services. Due to globalisation, they could not put physical barriers on imports, so they had to come up with other ideas to regulate foreign trade.

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