Government Trade Policies, Such as Tariffs and Quota Restrictions on Imports

question 26

Multiple Choice

Government trade policies, such as tariffs and quota restrictions on imports,

• A) Can eliminate a trade imbalance.
• B) Often increase a trade deficit.
• C) Have no real effect on the trade balance.
• D) Can lower a deficit on current accounts but not on the capital account.

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Definitions:

GATT

GATT, or the General Agreement on Tariffs and Trade, was a multilateral treaty aimed at reducing trade barriers and promoting international trade through the regulation and liberalization of trade policies.

International Treaty

A formal agreement between two or more sovereign states in specific areas, subject to international law.

Health, Safety

pertains to the regulations, procedures, and practices that protect the wellbeing of individuals, particularly in the workplace or public environments.

Technical Standards

Established norms or requirements in regards to technical systems and their components, such as quality, safety, and interoperability standards to ensure compatibility and efficiency.