Match each type of barrier to trade to its effect.
blocks all trade with another country
taxes certain classes of imported or exported goods
limits the volume of goods imported from a foreign country Responses tariff quota embargo
blocks all trade with another country - embargo
taxes certain classes of imported or exported goods - tariff
limits the volume of goods imported from a foreign country - quota
tariff: taxes certain classes of imported or exported goods
quota: limits the volume of goods imported from a foreign country
embargo: blocks all trade with another country
To match each type of barrier to trade to its effect, let's break down the options provided:
1. Tariff: This is a tax imposed on imported or exported goods. The effect of a tariff is to increase the price of the imported goods, making them less competitive compared to domestically produced goods. It is used to protect domestic industries and generate revenue for the government.
2. Quota: A quota is a limit imposed on the volume or quantity of goods that can be imported from a foreign country. The effect of a quota is to restrict the supply of imported goods, which can lead to higher prices and protect domestic industries from foreign competition.
3. Embargo: An embargo completely blocks all trade with another country. This means there is a complete ban on importing or exporting any goods from or to the embargoed country. The effect of an embargo is to sever all economic ties and restrict all trade, often used as a political or diplomatic measure.
Now, let's match the types of barriers to trade to their corresponding effects:
- Tariff: Taxes certain classes of imported or exported goods
- Quota: Limits the volume of goods imported from a foreign country
- Embargo: Blocks all trade with another country