Restrictions on Free Trade (Lesson 4)

Question 1

Define Subsidies

Answer 1

Financial support provided by the government to domestic businesses and industries.

Question 2

Define administrative barriers

Answer 2

Bureaucratic rules, regulations and procedure which make it difficult for a foreign country to enter a domestic market.

Question 3

Define Exchange rate manipulation

Answer 3

A country deliberately overvalues or undervalues their country to gain an unfair comparative advantage in international trade.

Question 4

Define Tariffs

Answer 4

Taxes imposed by government on imported goods.

Question 5

Define Quotas

Answer 5

Limits set by a government to limit the quantity or value of a certain type of good that can be imported or exported over a specific period.