Which of the following is a political motive behind a government’s intervention in trade?
A) A major economic motive behind government intervention in trade is the protection of jobs. B) A major political motive behind government intervention in trade is the protection of infant industries. … D) Governments intervene to protect only imports, as the protection of exports is handled by private agencies.
Which of the following are instruments of trade policy?
Geoff Jehle examines the primary instruments of national trade policy, often termed commercial policy, including quantitative restrictions (e.g., quotas), tariffs, non-tariff barriers, and export taxes.
What are four main instruments of trade quizlet?
Trade policy uses seven main instruments: tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping duties. Tariffs are the oldest and simplest instrument of trade policy.
What are two ways a government uses intervention in trade as a foreign policy instrument?
There are many different instruments that governments can use to affect trade, including: Tariffs, which protect domestic industries from foreign competition by increasing the cost of imported goods through a tax.
Who or what benefits most from barriers to trade also called protection?
Both tariffs and subsidies raise the price of foreign goods relative to domestic goods, which reduces imports. Barriers to trade are often called “protection” because their stated purpose is to shield or advance particular industries or segments of an economy.
Which of the following is an example of an economic motive for nations attempts to influence international trade?
The most common economic reason for nations’ attempts to influence international trade is preserving national security. … The main cultural motives behind government intervention in trade include protecting jobs and preserving national security.
What are the instruments of trade?
Classic trade policy instruments include:
- Voluntary Export Restraints.
- Export Taxes.
- Export Subsidies.
What is the importance of trade policy?
Trade policies determine the size of markets for the output of firms and hence strongly influence both foreign and domestic investment. Over time, the influence of trade policies on the investment climate is growing.
What are the objectives of trade policy?
General trade policy objectives have focused on reduced protection, achieving a more outward- oriented trade regime, increased market access for exports, and greater global integration, aimed at increasing economic efficiency, competitiveness, and export-led growth.
What are the two components of strategic trade policy Check all that apply?
Strategic trade policy has two components to raise national income – helping firms to capture first-mover advantages and intervening in an industry where foreign firms have already gained a first-mover advantage.
What’s the main reason a country would use export tariffs?
Tariffs are generally imposed for one of four reasons: To protect newly established domestic industries from foreign competition. To protect aging and inefficient domestic industries from foreign competition. To protect domestic producers from “dumping” by foreign companies or governments.
What is considered the simplest instrument of trade policy?
When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called trade. What is considered the simplest instrument of trade policy? … The US places a 9% tax on the cheese as a proportion of its value.
What is the goal of free trade?
A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
What measures do governments take to promote exports?
To promote exports and restrict imports the government can either institute a tariff on foreign imports or an export subsidy on domestic goods.